How to Improve Cash Management in Your Business

1. How to Improve Cash Management in Your Business Effective cash management is important for any business. Poor cash management can lead host of issues within your business, for example, inability to pay your bills. In view of this, we have listed 5 different ways you can improve your cash management, regardless of the size of your business. It is also important that none of these strategies are especially expensive to execute, merely requiring you to re-think a couple of elements of your business: Adopt an Epos System Having an effective epos system can automatically track all incoming payments and changes to stock as it processes a payment for your service or product. Profits can also be maximized with epos software with quick and accurate reports on a daily, weekly or monthly basis. These reports can interface directly into cloud reporting software, which allows for a wider range of detailed reports to help keep you on top of your business. All transactions are recorded so at the closing time of the day, you can guarantee that any and everything has been accounted accurately. Know Your Breakeven Point You can't keep on making profits unless you know your breakeven point. An important reason to calculate this number is so you can understand complete ongoing expenses and if the point is too high, you can assess what you need cut. Calculate this number along with taxes, costs and income with the goal that you can be proactive when addressing your costs if they start to rise. Have Money in Reserve Keeping up some money in reserve is important for a business. If for instance, you have a terrible month and you are hit with a surprising cost, you can use that money to take care of the bills without going into the debt. It is a smart idea to place your profits into cash reserves first before you grow the business, if there is some emergency hitting you unexpectedly.

2. Use Incentives to Increase Sales Everybody loves a good deal, so tempting your customers with incentives is potentially a decent way of increasing your sales while not costing a lot to implement. For example, coupon codes are a good idea. You can email a customer a coupon to entice them to return to you as a recurrent customer. The coupon doesn't cost you anything to send and may bring back repeat business in the future for a fraction of the price of gaining another one. You could also analyse into sponsoring a competition and give away a product or service; the products don't need to cost a lot, while it could bring about a good amount of coverage. Collect Receivables As Soon As Possible Many businesses end up under financial pressure due to delivering goods and services without accepting payment. This may bring about you paying interest on loans taken out to cover your short comings, as there is no pressure on your customers to pay right away. You should keep purchases like these, and give your customers incentives to pay for goods and products straight away.