Best Ways to Manage Cash Flow

Brilia/ December 29, 2020/ Travel

Here are some tips from the experts on how to manage your cash flow Situs Nonton Movie Sub Indo. Don’t wait to send invoices. As mentioned earlier, a key reason cash flow matters is that it distinguishes between invoices you’ve sent and invoices that have actually been paid – that $10,000 invoice means little if you don’t yet have that money on hand to cover your expenses. That’s why you shouldn’t hesitate to send invoices for your work.

You may want to shift from a monthly invoicing model to one in which invoices are sent every time you complete a certain amount of work. For example, if your small business is an advertising agency, send your invoice not on November 30, but whenever in November you complete a preset number of campaigns, ad spends or other initiatives.

Adjust your inventory as needed. Check your inventory to identify items that aren’t selling well. These items harm your cash flow – the cash you’ve spent to obtain them isn’t converting to sales and thus revenue. You can address this cash flow concern by selling these less frequently purchased items for discounted prices and not buying additional stock after you deplete what you currently have. Similarly, you can always invest more into buying more stock of items that do sell well.

Lease your equipment instead of buying it. Even though it’s usually cheaper over the long-term, buying new equipment and updating outdated equipment can be costly in the short-term (not to mention time-consuming). Leasing your equipment instead can lessen your short-term financial burden. You won’t have to upgrade or try to sell outdated equipment that you’ve purchased, and equipment leases often qualify for tax credits that lessen your tax burden. As such, you’ll have less cash leaving your bank in large lump sums and thus, have a more regular cash flow.

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