Posts Tagged "positive cash flow"

5 Tips for Maintaining Positive Cash Flow

Posted by on Oct 19, 2016 in Blog

5 Tips for Maintaining Positive Cash Flow

Understanding the difference between profit and cash flow is critical. Many business owners make the mistake of focusing almost exclusively on profit. While it’s certainly important for businesses to earn a profit over time, the timing of expenses, in relation to revenues, is the key to being able to continue operations. Unless cash flows are adequate to cover the payment of operating expenses, the business will be in danger of immediate failure. The following tips can help you to maintain a positive cash flow. Encourage Early Payment of Receivables Accounts receivables are monies that are owed to you.  You can temporarily increase your cash flow by encouraging your clients to pay you early. Automatically send invoices to clients once work is completed or delivered.  Offer a small discount, of 3 to 5% of the balance, to customers who pay early, usually within a few days of receiving the invoice. For clients who have a past due balance, consider sending a polite reminder of the bill that is due, and advise if they will pay within the next week, any late fee or interest charges will be waived. This will encourage your late paying clients to go ahead and pay...

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