More than anything else in their businesses, smart small-business owners stay on top of their cash flow, monitoring their cash flow statements monthly or even weekly to keep their eye on the pulse of their business. These critical numbers tell you just how much is coming in and how much is going out of your business. Making more than you’re spending? It’s all good. Cash flow regularly edging into the red? Not so good.
If you’ve been less than diligent about monitoring your business’s money, these 12 tips can help you boost your business’s cash flow so you don’t have to live like Gandhi (unless you want to):
Monitor your cash flow regularly
Online accounting software such as QuickBooks Online makes it simple to reconcile your accounts, generate reports and more. Because your information is secure in the cloud, you can easily stay on top of your cash flow wherever you are.
Cut costs
Focus on recurring monthly, quarterly or annual expenses. Can you cut back on utilities, rent or payroll? Are you spending money on subscriptions or services you’re not using or insurance you no longer need? Can you renegotiate the terms of outstanding loans or leases?
Cash in on assets
Do you have equipment you no longer use or inventory that’s becoming obsolete? Consider selling it to generate quick cash.
