Fix cash flow problems: 5 simple things to do

Cash flow problems can be happened to any businesses, specially to small businesses. Cash flow problem can be easily defined; cash available on hand is less than the cash required for expenses. Bad cash flow causes by many reasons, it might be your customers are not paying you in time or your expenses have been increased.

The good news is having a bad cash flow can be fixed; you can back on track with your cash flow and move your business in the right direction. Here are few things you can do:

1. Speed cash flow by speeding up your sales cycle. You can achieve this by sending your invoices faster to the customers and provide easier payment methods to your customers so your invoices will be paid faster.

2. Increase you sales, you can do that by starting with your current customers, make sales calls or send them email so you can get them involved with another services your are offering. Also try to acquire new customers by do some marketing, special offers and discounts.

3. Get the job done, if you are working alone, try to complete your projects on time so you will get paid for them, ask for help or even hire someone to help you with part time job or only for certain projects so you won't get stuck with old projects which will prevent you from having new projects.
If you are working with a team, learn how to delegate tasks to the right person so the job will get done faster. You can also use project management software that can help you to manage you projects and to collaborate more with your team.

4. Evaluate your terms and make sure that your customers and vendor's terms are balanced. You can make modification to your customer's terms and make sure that you are getting paid at the start of your work. You can add another amount of payment if your work has stages. Also, you can add fees for late payment.

5. Cut off extra or unnecessary expenses to keep your cash on hand longer time. If there are any services you are getting from your vendors that you don't need in the meantime, you can cut it for now and return it back when your cash flow is healthier.

If you need extra help, checkHow acclux accounting can help you to stay in control of your cash flow