As a small business owner, making sure you maintain a healthy amount of capital at all times is one of your top priorities. But how can you ensure you always have enough cash flow to keep your company going and growing? Here are some strategies that will help you better monitor your finances and save you money:
Keep on top of your receivables and overdue bills
One of the biggest pitfalls in keeping a healthy cashflow is staying on top of your billing and receivables. It is very easy to lose track of your unpaid bills. You need to be proactive in continuous follow up by tracking all activities with your client. This is a very beneficial way to maintain healthy relationship with your clients and maintain a healthy book of business. D2R-Collect provides an easy and flexible setup that fits your business needs what ever they are. Those setups are broken down by industry and type of business to fit your business needs in an easy to adopt environment.
Reconsider Your Business Structure
Are you missing out on tax benefits and other financial perks because your business isn’t structured the way it should? If you’re operating as a sole proprietorship or partnership, you may have a harder time raising the funds you need to grow, and you’ll also be personally liable financially in case of a lawsuit. If you want liability protection as well as the ability to get quicker funding via bank loans, consider forming an LLC instead. When you own a limited liability company, you won’t have to pay corporate taxes, and you’ll also be able to claim self-employed tax deductions and credits.
Switch to Digital Invoices
Have you been sending out invoices that you’ve processed manually? Investing in a solid invoicing software will allow you to cut down on time spent on administrative tasks, and by automating the process, you’ll also be able to virtually eliminate human error. Instantly generate an invoice with data gathered and populated from your customer relationship management system, and send it electronically as a PDF file to your client, who will then be able to make payment faster. Allow for user-friendly electronic payment options so that your customers can pay you with just a few clicks on their smart devices. You’ll cut down on the time it takes to process payments, thus helping you maintain a healthy cash flow.
Lease Your Equipment
Even though buying is often cheaper in the long run than leasing, if you’re in a field that requires constant equipment upgrades, you may be better off leasing the machinery you need to perform your job. Leasing allows you to have a better handle on your cash flow since you will be making regular monthly payments, and if anything breaks or starts malfunctioning, you won’t be on the hook for the repair or replacement costs. And with less money spent upfront, you’ll be able to invest in bigger and better technology, machinery, computers, or IT equipment and grow your business faster. Additionally, you can claim your leasing expenses as a business tax deduction.
Ramp Up your Advertising
If you’ve been solely relying on traditional methods for your marketing and advertising campaigns, such as print ads, radio commercials, billboards, flyers, mailers, and yard signs, consider launching a social media campaign on Facebook to reach a wider audience. You’ll increase your number of brand followers by designing eye-catching social media ads. To get started, design a Facebook ad online by selecting a professional template and then customizing it using your own logo, colors, fonts, and branding to help your business stand out. Add a call to action button on your ad that will take visitors directly to a page on your website where they’ll be able to get a quote, order your products, or be added to your mailing list. It only takes minutes to create the perfect ad, and it’s free!
To maintain a healthy cash flow for your small business, make sure you take advantage of all the tax benefits you’re entitled to. Invest in digital technologies to streamline and automate your processes. And revamp your marketing strategy to include social media ads.
Collect faster and get higher closing rates with D2R-Collect.com. Our intelligent software will simplify your admin tasks and empower you to do more.