It doesn’t matter if you have a great bookkeeper Melbourne or are taking care of the books yourself; you need to ensure your business has good cash flow. Cash flow is a big problem for businesses because if they don’t have a continuous stream of cash flow, they actually may struggle to make it through the year. When cash flow is a big problem, there are a few things you may want to consider to help improve the situation. Read on to find just five simple things to help you today.
Ensure Any Commission Is Paid After Sales
A lot of business owners pay their employees who earn via commission immediately but it’s not always the best solution. If an initial sale is reversed or canceled it means the employee is paid commission they technically aren’t entitled to. You should only ever pay out commissions when a sale has actually gone through. It will make all the difference in the world when it comes to having good cash flow. Any bookkeeper will tell you the same thing and it will make the books a lot easier to work as well.
You Must Free Up Cash from Outstanding Invoices
If you are waiting to be paid, you have to have a limit over how long you are willing to wait to be paid. For example, you might have racked up over three thousand dollars in sales but have yet to receive it. That is potentially $3000 worth of cash flow lost and it’s not ideal to say the least. Why not look at putting a 90-day limit to payments—it might help to improve your business cash flow. To find out more, check out www.bookkeeperco.com.au.
Why Not Reduce Sales Staff if There Are Slow Periods
You don’t want to let anyone go but if you are having issues with cash flow and the sales are really slow you have to take action. You need to try and get your sales staff reduced when you are not making enough from them. It will be the smartest way to help keep cash flow fairly decent. Hiring a bookkeeper Melbourne will tell you the same thing and while it’s a bit of a stress for most employees, it’s unfortunately necessary.
Keep a Close Eye over Stock
You need to know your inventory well so that you know what you need to buy and how much stock you have left over. If you aren’t careful enough you will buy more than you need and that’s a waste when it comes to cash flow. If you want to ensure your cash flow is good, you need to closely inventory your stock. It will make a real difference to say the least. A bookkeeper will tell you the same thing.
Hire a Professional to Keep the Books in Order
Another great way to help shore up your cash flow has to be to hire a professional. Now professionals are not going to always ensure you get more money available to you but they can certainly help you understand your finances better. When you look at bookkeepers, you can get a lot of help and support and they might be able to help with freeing up some cash flow too. To find out more, check out www.bookkeeperco.com.au.
Improve Your Cash Flow
When you run a business, you have to look at ways to help improve your overall cash flow. It’s not always going to be easy because while you can make small changes to help move things along a bit, they might not be as effective as you would like. It’s the tricky element of running a business, cash flow can always be tight so freeing up more, will be a challenge to say the least. Hiring a bookkeeper Melbourne may be able to help you in these matters.