Having adequate cash flow is essential to keep your business running. Without it, your business would not be able to survive. CB&S Bank has a great cash flow calculator to help you determine the cash flow generated by your business. We have also come up with these simple tips on how to manage your cash flow:
- Analyze your costs and try to cut back when you can—Analyze all of your costs quarterly and try to cut back where you can... Maybe you have a subscription to a service that you no longer utilize? Maybe you're spending money on insurance that is no longer needed? Whatever the case, it is important to review your expenses periodically.
- Make a budget and follow it—Having a budget in place and actually following it will help you to outline your financial goals. A business budget identifies your current available capital, estimates your expenses and foresees your profits.
- Open a business savings account—Use a business savings account to save for any cash shortfalls your business may endure. If you already have some cash to fall back on, it will be easier to pay attention to your cash flow and you won't stress about the shortfalls.
- Open a business credit card—A business credit card can be an excellent cash management solution for your business. It gives you added control for your business, improves your cash flow, and improves the way you manage your business finances. Look for a business credit card like CB&S Bank's ScoreCard Rewards Business Credit Card with rewards such as points you can use for travel, merchandise and gift cards for your card purchase activity.
- Stay up-to-date on invoicing—Don't wait to send out your invoices. Send invoices as soon as the work is completed or the product has been delivered.
- Consider leasing equipment—Consider leasing your equipment to stay current with the latest technology.