Every small business, even the most successful, can benefit from a money makeover from time to time. Some of the best changes are those that are operations-based because they can help you improve your business finances on a larger, more sustainable, scale. The following seven tips may take a little time to execute, but they are fairly painless, and will help you create lasting change in your small business finances.
1. Modify Your Accounts Receivable Process
A key to ensuring adequate cash flow is timely invoicing and collecting payments. If you invoice your customers on a loose and sporadic schedule, you will get paid on a loose and sporadic schedule. Create a standard billing policy, that includes clear payment terms, and outlines the process you will take to collect on unpaid bills, then follow through. And don’t be afraid to reach out to your customers personally to inquire about payments. Sometimes a personal touch is all you need to make sure payments are sent on time. Read More