How do you make the most of your money when it comes to your business finances? This is an essential question that you have to consider whether you have just launched your business or taking it to the next level. In truth, it doesn't matter if you are just starting out or if you have been in business for a while, the money needs to stretch as far as possible.
Here are four ways to quickly and easily take charge of your money:
Streamline the purchase process
Your business has to pay for many things to procure services necessary
Buying what you need for your business is often referred to as the procure to pay process. In many cases, these often handled transactions increase overheads.Although manual methods like cutting a check after receiving an invoice may appear to be a simple enough process, there are many levels to it: accountants have to reconcile invoices; finance managers have to manage budgets and payment methods; and supply chain managers have to make sure that inventory and vendor relationships are properly handled. These levels of coordinating the procure to pay cycle mean that your company can pay over $10 for every invoice that it pays out. The solution to cutting these costs is to use digital processes to streamline everything.
Avoid negative cash flow
Cash flow is the amount of money that moves through your business to keep it running. When you have positive cash flow, your business has enough money to handle its expenses. Nevertheless, there are situations where your business has plenty of revenue on paper, but you don't have enough cash-on-hand, to foot your bills.
This situation usually occurs when customers receive a 30- to 60- day line of credit. Although the work has been done, you have to wait to collect payment. One solution to this dilemma is to use accounts receivable financing, which is also commonly referred to as factoring receivables. A factoring service will grant you an 80 or 90 percent advance and buy the invoice from you. They will then collect the full amount from the customer when their bill is due. Although you will have to pay a fee to receive the advance, you may still be eligible for a rebate later.
Another situation when you could experience negative cash-flow arises when customers are slow to pay you. Sometimes customer
Improve how you manage your money
Tracking your money is important. If you are not yet in a position to hire an accountant, then your next best option is to hire a freelance bookkeeper. If you do this, make sure they use the best accounting software for your business. The bookkeeper will track of all the mundane aspects of your finances. The accounting software will make sure that all your financial data is properly organized.
Learn business best practices
All aspects of your business will improve if you can find someone who is able to teach you marketing and money management skills. If you can't find a mentor, you have three options open to you. Read books, watch DVDs, and listen to audiotapes in your car by business experts. Attend se
You have power to improve how your business handles money: Streamline the purchase process. Avoid negative cash flow. Improve how you manage your money. Learn more about business best practices.
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