Your business budget runs a lot like your personal budget. You must keep track of how much cash you have on hand at all times, or you’ll run into unpaid bills and unhappy employees quickly. Cash flow shortages aren’t always the sign of problems, rather, they may be the sign that your business is growing faster than you anticipated.
Listen to the Experts
In order to avoid these problems, experts recommend you follow the ten rules of managing your cash flow.
- Avoid running out of cash. Idealistic but important to state.
- Don’t forget that cash is king. Without cash, you have no business.
- Keep track of what your cash balance is at all times. Business failures happen to the most intelligent people who fail to keep track of a cash balance accurately.
- Stay on top of your budget. Always do the day’s work on the day it is done to keep your budgets accurate.
- If you can’t do the budget work, find someone that can. Remember, it must be done.
- The bank balance is not the same as the cash balance, and you should always work off the cash balance.
- Project your cash balance six months down the road and change the management of your business to match your projections.
- Remember that cash flow problems can often be predicted, and rarely “just happen”.
- Cash flow projections are a necessity.
- Getting rid of cash flow problems allows you to focus on your customers and your new products.
Controlling your cash flow means that you are free to run your business how you want. While you can do your best to predict, there are always unforeseen circumstances and things outside of your control. When these things pop up, options like receivable factoring are the best way to get your cash flow problems under control quickly.
Your Questions Answered Quickly
Whether your business is thriving and you can’t keep up, or you are waiting on clients to pay, Universal Funding can help your growing company. Visit our rate form today to learn more about receivable factoring and how it can improve company’s cash flow.