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Quick Tips to Improve Cash Flow

Nov 10, 2015 4:17:22 PM Kathy Dise Financial Management

If you were not able to attend my seminar “How to Improve Your Cash Flow,” here is a list of tips that came out of the session. You're sure to find one tip here that will improve cash flow and profitability for your company.

What are the biggest cash mistakes that I see from the standpoint of a bookkeeper?

  1. cash-flow

    Not hoarding cash to pay taxes

  2. Not meeting with your accountant in the last quarter of the year to determine your tax liability

  3. Not collecting Accounts Receivables rigorously

  4. Lack of controls on your assets. For example, allowing others access to credit cards and/or bank accounts.

  5. Not knowing the real cost of a service or product 

  6. Having one client – it's the kiss of death

  7. Stopping marketing when sales are brisk

What are most effective ways to quickly collect on Accounts Receivables?

  1. Make the term on invoices 10 days

  2. Follow your collection schedule 

  3. Keep your contact information current 

  4. Have good boilerplate wording in your cover letter

  5. Set up an automatic ACH for chronic slow pay customers

How does a company improve profitability?

  1. Forecast

  2. Look at the past- year and recent month

  3. How much can you do next month

  4. Expenses – can you find hidden fees? (subscriptions, largest numbers, materials and labor costs)

If a company has never had financial statements how could they get started?

  1. Separate business and personal accounts

  2. Use good categories- chart of accounts

  3. Have a financial system that you are addicted to

How often should companies update their financial information and check their forecast?

  1. Add transactions weekly – have a rhythm

  2. Review the information for mistakes monthly

  3. Reconcile all your bank accounts monthly

  4. Compare actual numbers to forecast monthly

What are some hot topics our clients ask us?

  1. Should I use QuickBooks Online? YES

How do I track time to get the total cost of a job?  Ebility or Excel

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Kathy Dise

Written by Kathy Dise

Kathy has over 30 years experience helping small businesses succeed. As a commercial lender, commercialization expert and now as a QuickBooks diamond level advisor, Kathy understands the challenges small business owners face. Her experience helps business owners quickly accomplish their financial goals. As the owner of BudgetEase, Kathy works with clients to develop a plan to efficiently process 1,000s of small transactions so owners can make informed decisions. She lives in Shaker Heights, OH with her husband Ralph and enjoys golf, curling and walking in Cleveland’s fabulous Metro Parks.