Cash flow. This is the most important but easily overlooked part of business management. As a business owner, it’s easy to get involved in the day-to-day running of your business. However, it doesn’t take long for poor cash flow management to catch up.
Learn how to secure cash flow and keep your business running smoothly with these three tips.
1. Ensure business clarity
Can you drill down into each task, view shipping times, track how long it takes to invoice and receive payments? Maybe you can do one or two things, but not all of them. Business clarity means having all your business data in one organized place. That means not having to click through a stack of spreadsheets to find the answers you’re looking for.
Often this lack of clarity stems from running your business on a variety of software that is not well linked. Or, you could still be using paper and the data is not updating in your system.
Regardless of the situation, companies that prioritize organizing their data in one place often have a better idea of where their money is coming from and where it is going.
One way to do this is to upgrade to field service management software where you can collect data from all of your company’s workflows. Not only will this help you see where you’re making and losing money, but you’ll also be able to generate comprehensive reports that drill down into the root issues of your cash flow issues. This information can then help you make strategic decisions and increase profitability.
2. Speed up processes with invoicing software
Once you have all-in-one software in place, you can focus on simplifying customer billing and getting them to pay you quickly. This cycle is an essential part of good cash flow management, so it is important to ensure that it runs smoothly and efficiently.
Invoicing software can help you save time when a job is completed. You can set up auto-invoicing for recurring tasks and auto-fill invoices to pull cost information from a document and integrate it with your accounting software to ensure your financials are accurate.
3. Offer flexible payment options
Then it’s time to see how you can make it easier for your customers to pay. Provide a variety of options so customers can choose the payment option that suits their needs. By doing so, your customers are more likely to pay quickly, which improves cash flow.
Another option for payment flexibility is payment automation. For example, if you have recurring maintenance work or your company is working on a larger project, you might be working on a progress billing arrangement. In these cases, you can easily set up automatic invoicing and payment processing to reduce staff stress by reducing searching for invoices and ensuring your payments stay up to date.
Want more cash flow tips?
Request a personalized 1:1 session with a talented simPRO consultant. Visit simprogroup.com/ca.