It is rather easy to start a business, however, the difficulty lies in acquiring customers, and even if you manage to get some, retaining them is probably the biggest challenge. On top of all this comes the hardest part, managing your cash.
Here are some tips from bookkeeping and accounting services experts on how to manage cash in your business so that you are never short.
Don’t hate bookkeeping, start liking it
Reconciling cash on a daily basis, or at least once a week is a great idea. You may have acquired your majors in marketing, but that cannot make you adept at handling cash. For some, reconciling cash is probably the most nightmarish experience ever. What with having to research errors periodically before the statement date, you are bound to get tensed up. The best thing to do is to closely monitor the errors at the earliest (rather, as soon as they occur), and this is possible only if reconciliation is done on a daily basis. If daily seems quite impossible with your busy schedule, at least do it weekly.
Keep an eye on Accounts Receivable
Any bookkeeping and accounting Services company worth its salt will realize the importance of monitoring accounts receivable like a hawk. If you want to run a healthy business make sure you keenly follow up unpaid invoices. Of course, if you are running a ‘cash and carry’ business you’ll never encounter any such issues. However, in today’s highly competitive world, extending credit is a shrewd business practice, but collecting your dues on time is equally important. Assign one day in a week to go through your reports and mark the payments that are overdue, and call those customers promptly and prevail upon them to mail the check at the earliest. Remember even letting a bill remain unpaid even a day after the due date is not advisable.
Gauge the Trend
Ask any professional bookkeeping and accounting Services expert and he or she will tell you how important it is to forecast the future, especially the cash flow part of your business for the coming week should be forecast in the form of a spreadsheet, so that you get to know where exactly you stand. If you don’t have a forecasting system in place ask your certified public account or tax expert who will be able to devise a working plan for you, either for a week in advance or even several weeks.
Give some thought to it and try to implement at least two of the above-mentioned tips and you’ll see the difference in the cash flow in your business. To know more about how to manage cash flow better lookup Infognana, the professionals who know their business.