Healthy cash flow is one of the keys to making your business run smoothly. You see, a business with a healthy cash flow can make it easier for you to make regular payments. Thus, your business operations can continue and you will have many opportunities to expand. So, how do you manage cash flow? Find out through the following explanation!

 

1. Reduce or delay your spending

 

Reducing or delaying expenses is one of the effective tips to help you manage cash flow. For example, when there are several bills that you need to pay, try to see if the payment can be delayed or not.

You see, even though these payments can be delayed for a few days or weeks, the impact is very significant on your business cash flow. Meanwhile, to make your business more effective, you can switch digitally by relying on the Cashlez App. All transactions will be recorded automatically without you having to manually record them!

[Also read: Get to know Cash Flow in Business that You Must Manage!]

 

2. Increase sales through promotion

 

Apart from reducing expenses, business people who want to manage their cash flow on a regular basis also need to increase sales. Therefore, you can implement promotions so that your sales can increase and be more efficient.

There are various types of promotions that you can apply, such as referral programs, discounts through online purchases, or special contests for your customers.

 

3. Take advantage of existing technology

 

An equally important way so that you can maintain business finances is to rely on existing technology. As we know, in the past maybe every business actor would record their finances manually. However, today’s technological advances allow you to record all expenses and income efficiently.

Through the Premium POS feature from Cashlez, there are additional reports and profit and loss options that will help you monitor the financial condition of your business.

 

4. Prioritize funds over profits

 

Perhaps, during this time many people think that profit is the key to the success of a business. In fact, it is the way you manage business finances that is important to pay attention to. You see, without being properly regulated, the income you generate will not be able to help you grow your business.

Therefore, make sure to always check your income and compare it with the minimum required funds. When you can earn a lot of income but you are still having trouble managing your finances, it means you still have to introspect on how you manage your finances.

[Also read: 7 Types of Documents Business Owners Must Keep]

 

5. Set the period and payment of invoices

 

Before you work with suppliers or transact with new customers, make sure to set the repayment time for the bills you send. Usually, an invoice must be processed within a certain time period, such as every month or every two months.

Meanwhile, for big projects in business that you get, you should also include an initial deposit. The deposit will help you to pay off the costs for working on the project. After the project is completed, then you can return to doing the rest of the bill.

 

Every business actor certainly has a different way of managing his business, including when managing cash flow. Maybe, not all of the above methods can be applied. However, make sure to try various tips for managing finances so you can find out which tips are the most suitable for you!

  

 

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