Cash Flow
Credit Strategies for Your Business
It’s difficult to find one credit solution that does everything you want it to do for your business.
Cash flow boosters
Want to sleep better at night? Tune up your cash flow.
Tune up your business for improved cash flow
The end of the year is a traditional time to take stock of your accomplishments and set targets for the future. Making an annual business check-up part of this tradition can help you find efficiencies that may provide you with extra time and improved cash-flow.
Cash Management
No matter how profitable a business is, there’s one thing that often trips companies up: cash management issues. Many companies have seasonal businesses, which means they have to buy or create goods in one season to sell in another. With money going out in one part of the year and cash coming in later on, it’s imperative that these operations have enough dough to keep the business running all year round.
Where should you park your money?
Whether a company is small or large, a sound cash management strategy can make or break a business. Elements of cash management that we’ve previously discussed include managing cash flow, accounts and inventory. Now, its time to look at managing your cash on hand.
Learning about cash flow
Best Practices for Collections
It’s important for all businesses, big and small, to take control of their accounts receivable. Properly managing your accounts receivable - the revenue you expect for the goods and services you sell – can boost your cash flow and support your other business efforts, such as staffing and marketing.
There is another good reason to stay on top of your accounts receivable: Statistics show that the longer an account remains unpaid, the greater the risk that it will not be paid in full.
Although your collection policy will reflect the needs of your business, the nature of your customers, and the industry you operate in, there are some best practices common to all.
Cash Flow
Growing businesses consume money. Many have called cash flow the life blood of small business, and it’s true. While a great business idea, a passionate entrepreneur, and customers ready to buy are the building blocks of a successful business, cash is the life force that transforms and feeds the potential of the enterprise. It allows it to thrive or, if there is not enough of it, can make the business anaemic and constrained. In the worst cases, it can ultimately be the factor that ends its existence.
Cash Flow is King
Susan Baka, experienced information specialist, writer, and international speaker specializing in the women's market, talks about cash flow strategies for your small business.
Receivables Management Worksheet
When you grant deferred payment options to customers, you are extending credit, which becomes receivables to your business - delivering your product or service upfront with payment to follow. Effectively managing these receivables will reduce losses due to uncollectable accounts by focusing on three key areas:1. Credit Policies; 2. Collection and Follow-up; and 3. Administrative Practices
Inventory Management Worksheet
Inventory can be one of the largest investments made by a small business. Effective management of this critical asset will you have sufficient quantity, of the right product, at the right time, in good condition, and that these objectives are met using the optimal amount of cash flow. Inventory management practices can be assessed by managing the size and makeup of inventory on hand, managing the rate at which inventory turns over, and managing the availability and cost of inventory financing. This worksheet is designed to help you evaluate your inventory management practices and to identify areas where you need additional focus to achieve your business’ specific objectives.
Receivables Management Worksheet
When you grant deferred payment options to customers, you are extending credit, which becomes receivables to your business - delivering your product or service upfront with payment to follow. Effectively managing these receivables will reduce losses due to uncollectable accounts by focusing on three key areas:1. Credit Policies; 2. Collection and Follow-up; and 3. Administrative Practices
Credit Application
Use this example of a Credit Application to understand what information will be required when applying for credit.
How Small Business Owners are Boosting Their Cash Flow
Each month, The Pulse provides market research insights gained by polling small business customers like you.
Our most recent survey* finds that entrepreneurs have a high degree of confidence in their ability to manage their cash flow. More than 80% of small business customers surveyed track their cash flow on a regular basis, with almost half of those customers preparing a formal cash-flow forecast.
When asked to compare their cash-flow position with 12 months ago, the results were positive, with 43% reporting it had stayed the same and 39% reporting their relative cash-flow position had increased. Only 15% of those surveyed reported a weaker relative position.
Increasing cash flow: Trades Editions
Cash flow is the difference between money coming into your business and money going out over a set period of time. Positive cash flow is a sign of business health. It means you have enough cash coming in to pay for salaries, supplies, and transportation costs.
Whatever the job you're on, you need the right tools to do it properly. The same applies to the financial side of your business. Taking advantage of the following financial tools may help you boost your cash flow.
How Small Businesses are Improving Their Cash Flow
Each month, The Pulse provides market research insights gained by polling small business customers like you.
Our most recent survey* finds that entrepreneurs have a high degree of confidence in their ability to manage their cash flow. More than 80% of small business customers surveyed track their cash flow on a regular basis, with almost half of those customers preparing a formal cash-flow forecast.
Managing Your Cash Flow
Better cash management can increase the success of any company. If a firm is cash rich, it can grow revenue through timely investments. If a firm is cash poor, it can help reduce the need for loans and interest expense. While growing the bottom line may be your objective, improving cash flow will help get you there.
Keeping the cash flowing
Joel Scopelleti
Partner and operator of Carick Home Improvements
In my last piece, I emphasized the importance of setting a payment schedule to keep cash flowing. But making sure money continues to roll in during the slower winter months is a tough job, as any tradesperson will tell you. Many Canadians are preparing to escape the city while others are busy spending their hard-earned dollars on gifts. With fewer customers in town and money tight, cash flow can suffer and that can have a huge impact on your trades business.
Collecting Your Cash
Roger Pierce
Entrepreneurship Expert at BizLaunch.ca
Cash flow can make or break any business. How you collect receivables and control expenses can make your practice viable or take your business down. Cash flow management deserves your attention.
A Blueprint for Cash-Flow Success
Jenna is a 34-year-old entrepreneur who is facing some cash-flow challenges — a familiar concern to small business owners just starting out. To help her tackle these concerns head on, her small business banker introduced her to a financial diagnostic tool. The result? Jenna was able to take charge of her cash flow. Find out how she did it.
10 Ways to Boost Your Cash Flow
In the business world, cash is king. You may anticipate large profits in the next six months, but if you don’t have enough cash coming in to cover your expenses during that time, you may not get a chance to realize those earnings. That’s why it’s important for all businesses to develop the right strategies to maintain a healthy cash flow. The following tips can help.
