Do you take this saying to heart in your business? Having enough cash in the business is critical for both your sanity and your success. Here are more tips to help your business cash flow:
- Pay staff and freelancers promptly. Staff will rely on income from you, so be a great boss and pay on time at the end of each week or month. If you commission work out to freelancers and want to develop a good working relationship so you can go back to them time after time, pay them promptly too!
- Pay other bills only when they are due. Check each invoice for payment terms and pay on the last day possible for the money to get to the payee in time. This ensures that the money stays in your bank account for as long as possible, helping you to cover your costs while waiting for clients to pay you.
- Deposit cheques promptly. This all helps ensure that there is as much money as possible IN your business account, rather than sitting on your desk!
- If you don’t have one already, look for an interest-paying business deposit account for your business reserve, and sweep money into this account regularly. Even though interest rates are low, a few per cent interest is better than nothing. By doing this you will get even more benefit from invoicing promptly and paying in cheques as soon as you get them.
- Check your bank charges, and shop around for a better deal. You could save every month if you switch, or you may find your existing bank improves their offer when you explain to them you want to move to cut costs.