In the current economic climate, many businesses are struggling, and this can affect your business too, as clients make cut backs. You can improve your business finances by learning some smart ways to manage your money. Here are 5 tips to help your business cash flow:
- If you will incur up-front costs on a project you may want to ask for a deposit. Definitely ask for a deposit from new clients!
- Stay on top of invoicing and send out bills as quickly as you can so you get your income as soon as possible.
- Make sure that you have a system for invoicing, whether you set up a database of client details in excel or use an accounts programme like Sage, Quickbooks or Freeagent.
- Think about the terms for payment that you offer each client: do you need your bills paid on receipt of invoice, within 14 days or 30 days?
- If you have completed work it can be reasonable to ask for payment on receipt.
Follow these steps, and keep track of the money coming in and out of your business. You will soon find that you are on the way to having a healthy amount in your business bank account.