3 Steps to Remain Positive Cash Flow In Business

1. Keep your invoicing up to date and current

If you have completed the work – have a workable system that allows your invoicing to go out either that day or the next day.

Invoicing needs to look professional – have your bookkeeper produce a professional looking invoice from the accounting package you are using. For example MYOB (if customised properly) produces a professional invoice – with company logos etc. You may be a small business but it is important to look and act professional.

2. Reconcile on a weekly basis

By doing this it is easy to see which debtors have not paid – follow up outstanding debtors on a weekly basis.
Check the terms of trade on your invoices – make sure the terms of trade reflect the nature of your business and be aware of what cash flow is needed to keep the business viable.

If you are a small trader it is suggested that your terms of trade should be COD or no longer than 7 days – so if you state 7 day trading terms, it is imperative you follow up after the 7 days.

3. Sometimes small traders find it difficult to ask for money owed to them

If you are one of these traders find someone reliable and professional to do this job for you. This is one of the reasons business fail – so this needs to be an important part of your business – if your bookkeeper is professional this is possibly a service they will provide for you. We at Business Bookkeepers have successfully offered this service to our clients.