Tips to Know About Managing Your Business’ Cash Flow

cashflow squeezeManaging cash flow is key to growing your business.  Here are a few tips to improve cash flow and help your business reach its goals. 

Make a goal to have positive cash flow. Positive cash flow is when your business has more money coming in than it needs to pay bills. This may sound simple, but writing down a goal and keeping it in a spot where you see it often really makes a difference in reaching that goal.

If your cash flow is negative, take steps to repair it. Review how you manage your accounts payable and receivable, your inventory and your credit terms. Look for patterns that lead to negative cash flow, such as buying more inventory than you can sell or extending credit to customers who always pay late.

Review your numbers regularly. Ideally, you should monitor your sales and expenses daily. At a minimum, monitor your business checking account, accounts receivable and accounts payable each week. 

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