Speed Your Cashflow – Helpful Hints

Collecting your accounts receivable faster will help improve your cash flow.

1. Manage Accounts Receivable – Shortening the average collection period for accounts receivable can have a positive impact on your cash flow. An aging report can also help you identify patterns with your customers that in turn can help optimize your billing.
2. Invoice Immediately – If you batch invoices once a month you are creating slower cash flow. Consider sending invoices at delivery or service. Consider moving from due in 30 days to “due upon receipt”.
3. Technology Advantage – Electronic billing statements and ACH debits are valuable tools to help small businesses automate the accounts receivable process.

While these tactics may seem like small changes, they can have a big impact on your business. With receivables coming in promptly and on time, your cash flow will be smoother, and you’ll be better equipped to ride out the economy’s ups and downs.

Contact us to discuss these and other ways to improve your cashflows.