3 Tips to Better Manage Cash Flow
Keeping a close eye on your business’s cash flow is key to reaching your professional goals. After all, how can you be successful if you’re in the negative? There’s a lot to keep track of when running a business, to be sure. That’s why we wanted to cover off on 3 tips to better manage your cash flow, so you can focus on the big picture.
Get Strategic with Bill Payments
Yes, the bills have to be paid. But when? Just as with your personal finances, it’s a good idea to spread your business bills out as much as possible. Don’t pay everything at the same time, which just leads to a giant hole in your financial coffers and opens up the possibility you won’t be able to pay everyone on time. Take the time to look over all of your bills and put them in order based on priority. Knock out the most business-critical ones first (think payroll, rent) and then stagger your other payments throughout the month. Now none of this means you can avoid paying your bills altogether—you need to pay on time, of course; otherwise, you’ll be staring down a tunnel of late fees.
Team Up with Technology
Once you’ve nailed down your regular bill payments, it’s time to bring in the big wigs: Technology. Automatic online payments are the best way to make sure you’re hitting deadlines. After your payment schedule is solidified, head online to transfer that schedule to the web. Electronic transfers ensure your payments are processed in a timely fashion. You should also be accepting payments online, too. Whether from vendors or suppliers or customers, digital payments are a lot more efficient—and certainly more practical than something like a check.
Pay Attention to Payroll Cycles
There are lots of options when it comes to the frequency with which you pay your staff. Some companies opt for weekly, bi-weekly, or even monthly payroll cycles. There are pros and cons to each scenario, so make sure you’re sticking to the right one. For instance, businesses that bring in money on a daily basis are able to cover weekly payroll—think retail and restaurants. If it takes a little more time for money to come in, then you’re likely better off with a bi-weekly or monthly payroll cadence. Making changes to your payroll structure isn’t cut and dry, however; be sure to do the research with the Department of Labor in your state to learn of any possible payroll requirements.
ARF Financial prides itself in making business financing easy. Operating since 2001, we’re now the #1 trusted source for restaurant loans, hospitality financing, retail funding and other small business loan products. We offer customized loan solutions designed to meet your business needs. And with larger loan amounts and longer terms, there’s nothing standing between you and your small business dreams. Stop by today to learn why thousands of business owners have chosen ARF Financial as their partner in success—we can’t wait to help you realize your goals, too.