The Top 5 Myths About BIR CAS-Ready Cloud Accounting Software: Debunked
By Johnny Kawa Introduction In recent years, cloud accounting software has gained…
Cash is King. A small business needs all the cash it can possibly get. While it is true that a good product, location, and business strategies are important aspects of building a growing business, a healthy cash flow is also a major contributory factor to its success. They say that “Just as good cash flow keeps a business afloat, poor cash flow can also sink it.”
There is no denying that cash is indeed important and it has to be properly managed. And managing cash flow is not an easy task. As you get on with your business, it is crucial to monitor it and plans for your cash flow management should not just be an afterthought.
Starting off on the wrong foot can be hazardous to the business. Hence, make certain that there are no cash flow problems as you start. And as the business goes on, it is critical to keep an eye on the cash flow position as regularly as you can.
Here are some things that you need to do to avoid cash flow concerns:
1. Have Easy Access To Ready Cash
When you are small and still starting out, there are times that running out of cash is a major blunder to growing your business. Sometimes you just have to invest more to earn more. Even with the most careful planning, there will be times when customers are indebted to you and they cannot pay on time, putting you in a panicky predicament. Well, you just have to have that ready access to cash. Perhaps a credit line or a cash reserve/savings can help.
2. Create A Cash Flow Budget
What is a cash flow budget? A cash flow budget or forecast is an estimate of how much money you expect to see coming in and going out of your business during a certain period. This can help you see the months with surplus and the months with the deficit. Then you can now plan the steps to take to grow in the foreseeable future. A cash flow budget is also a great avenue for you to be able to determine when to invest in capex and which expenses need to be on hold.
3. Send Invoices Promptly
You need cash running. Make it easier to get paid by sending invoices to your clients on time. If it takes a long time for you to invoice clients, it will also take a longer time for you to get paid. How can you revolve your resources? For companies with cash flow difficulties, getting paid quickly is important.
There is an invoicing solution, a cloud accounting software that can make it easier for you to send invoices automatically and also get paid online, and on time. It can also send overdue invoice notices to give clients a little notice to remind them to pay on time.
easyFS gives you a highly-accurate and real-time view of your financial statements.
Sign-up for a FREE easyFS Accounting System now!easyFS gives you a highly-accurate and real-time view of your financial statements.
Sign-up for a FREE easyFS Accounting System now!4. Review Your Expenses
If you find yourself always short of cash, then it is high time to review your expenses. Have you spent more than what was expected of you? It can easily balloon and you wouldn’t be able to stop it in time. Try to sit down and review your expenses one by one. Do your vertical analysis. What expenses take up a large percentage of your revenue? How can you cut these expenses? Do you know that a cloud-based management software can help reduce costs because of the automation it provides?
5. Smart and Reasonable Pricing
Pricing usually starts with knowing your numbers. You cannot also overprice. Your profit margin is an important factor to determine when analyzing prices. Your profit margin will let you know exactly how much money your company makes from the money it earns. Make a smart and reasonable pricing. With the help of cloud-based management software, you can have a better view of what needs to be done as far as pricing is concerned.
6. Implement a Systematic Inventory Management
Your stocks on hand are your lifeblood and if you do not know which products are bestsellers, then you cannot replenish on time. On the other hand, cash is becoming stale on those stocks that have not moved for the past months. Better dispose of them real quick to liquidate and get some cash. Proper and systematic inventory management is provided for by cloud-based management software. So look no further.
7. Cloud-Based Management Software
This software enables small businesses to monitor their cloud-based applications for compliance and security, facilitate workflow automation, manage inventory, monitor cash flow, collect payments, drive timely decision-making, and most of all, promote cost savings.
Still, having problems with cash flow? Let EasyFS guard your cash flow! EasyFS is Software-as-a-Service (SaaS) cloud accounting system that prevents cash flow shortages by accurately tracking purchases and business expenses. And to keep cash flowing, you can invoice your customers anytime, anywhere.
Monitor your invoices, send follow-up reminders, and collect payments online.And cash consistently flows because your hot-selling items are never out of stock with easyFS providing you with real-time inventory reports anytime, anywhere. https://human-incubator.com/easy-fis/
easyFS gives you a highly-accurate and real-time view of your financial statements.
Sign-up for a FREE easyFS Accounting System now!easyFS gives you a highly-accurate and real-time view of your financial statements.
Sign-up for a FREE easyFS Accounting System now!
