Small and medium business owners know that cash flow is the lifeblood of any company. Positive cash flows keep operations moving along; negative cash flow stops operations dead in their tracks. Savvy business owners understand that cash flow is even more important than profit when surviving and thriving.
What Healthy Cash Flow Represents
The cash flow report represents what financial resources a business actually has available. A profit statement might show what looks good on paper, but it doesn’t reflect the money that’s available and ready to help a business grow.
A healthy cash flow means that there is a continual supply of incoming money from customers. The more cash a business has on hand, the more liquidity a business has. Liquid assets —cash— are important in order to take advantage of cash discounts, time-constrained opportunities, and to meet any unexpected emergency needs.
How to Ensure Positive Cash Flow
To ensure consistent and positive cash flow, business owners need to avoid mistakes in handling accounts receivables. This includes:
Allowing Accounts Receivables to Age Too Long
Business experts recommend not letting accounts become aged for too long. This is because the longer they age, the easier it is for your customers and/or vendors to forget about them, assume they are not important, or simply ignore them.
Invoice Home helps small and medium-sized businesses to send out timely invoices easily and quickly so that your customers and vendors don’t become complacent about paying what they owe you.
Using a Payment Method That’s Inconvenient For You
When it comes to getting paid, you want to choose a convenient payment method to offer your clients, but one that is also convenient for you. At Invoice Home, you have several options to offer your customers for paying the bills they owe you. You can pick and choose from check, cash and online platforms PayPal, Stripe, or Authorize.net. That way, you can offer your clients the payment option that enables you to pay the minimum possible fees, get access to the funds as soon as possible, and the one that best supports all of your business needs. Invoice Home offers you choices so you can get paid in the most efficient manner possible.
Not Reminding Them of the Debt
Payment reminders are very important when conducting business. It’s very easy for your invoice to “get lost” or overlooked if your customer/vendor’s office is disorganized or poorly run. But that won’t be your problem if you make sure to send payment reminders. At Invoice Home, we make it easy as pie to send payment reminders to your clients, customers, and vendors. You can also choose from emailing or mailing invoices and reminders via old-school mail. There’s no way your invoice will be overlooked when you avail of Invoice Home’s straightforward invoice templates.
When your business uses Invoice Home to create and send your business invoices, cash flow will cease to be a problem. You’ll be able to completely control how and when your invoices go out, offer multiple payment options and send reminders as often as necessary. Try Invoice Home today.