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.
Not hoarding cash to pay taxes
Not meeting with your accountant in the last quarter of the year to determine your tax liability
Not collecting Accounts Receivables rigorously
Lack of controls on your assets. For example, allowing others access to credit cards and/or bank accounts.
Not knowing the real cost of a service or product
Having one client – it's the kiss of death
Stopping marketing when sales are brisk
Make the term on invoices 10 days
Follow your collection schedule
Keep your contact information current
Have good boilerplate wording in your cover letter
Set up an automatic ACH for chronic slow pay customers
Forecast
Look at the past- year and recent month
How much can you do next month
Expenses – can you find hidden fees? (subscriptions, largest numbers, materials and labor costs)
Separate business and personal accounts
Use good categories- chart of accounts
Have a financial system that you are addicted to
Add transactions weekly – have a rhythm
Review the information for mistakes monthly
Reconcile all your bank accounts monthly
Compare actual numbers to forecast monthly
Should I use QuickBooks Online? YES