No matter how big or small your business is, you need to to track your cash flow.
Sometimes as business owners, you can get so caught up in building your brand or serving your clients or coming up with your next big launch that you neglect to track your cash flow.
The only way you can really track your cash flow is to have accurate bookkeeping records. It’s so important to track those income and expenses so you know what is coming in and what is going out.
You want to maximize your cash flow as much as possible so you don’t get stuck in an emergency situation without funds to help you get through it. One way to do this is to lower your overhead costs. Here are some examples: Shop around for the best product/service before you purchase it – make sure you are getting the best deal, cut-back on things that aren’t necessary like fancy office supplies or elaborate gifts for your clients.
Another way you can maximize your cash flow is to collaborate with others and build a team of people you can rely on when you need to outsource so you know you’re not only getting great service but great value. You don’t want to pay outrageous rates for someone/something you’re not even sure is reliable. If you are working with a wholesaler who is providing you with goods, build a good relationship with them so you have a mutual trust – remember if they don’t deliver you don’t either which means decreased cash flow.
If you are in a bind or need extra cash flow quickly, try lowering the price on some products that have been sitting in inventory for awhile or offer a one time discount on your services. Just be sure that you are not losing money by doing this – remember, the idea is to maximize your cash flow.
You work hard for your money so why let it slip out of your hands so easily? You’ve got to keep a good grip on where it’s going so you can make the best decisions for your business.
Not sure where to start with tracking? Schedule a free consultation and see if I can help guide you in the right direction.