{"id":2832,"date":"2014-12-16T16:28:02","date_gmt":"2014-12-16T16:28:02","guid":{"rendered":"https:\/\/www.arffinancial.com\/development\/?p=2832"},"modified":"2021-10-01T14:14:39","modified_gmt":"2021-10-01T18:14:39","slug":"cash-flow-problems","status":"publish","type":"post","link":"https:\/\/www.arffinancial.com\/development\/cash-flow-problems\/","title":{"rendered":"How to Survive Cash Flow Problems"},"content":{"rendered":"

Correctly managing cash flow should be a top priority for all small business owners.<\/p>\n

If you’re not sure what cash flow really is, how to manage it or what to do if you end up with a cash flow shortfall<\/strong>, this article is for you!<\/p>\n

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Understanding Cash Flow<\/h2>\n

Cash flow represents the amount of money your business made, spent and then had left over within a given period of time.<\/p>\n

You want to be cash flow positive, meaning you have more money coming in than going out. Companies that have cash on hand are able to invest back into the business and make even more cash and profit.<\/strong><\/p>\n

For example, if you have money left over after paying all of your bills you can then invest in equipment upgrades, building renovations, expansions and so on.<\/p>\n

Tips for Managing Cash Flow<\/h2>\n

To correctly project cash flow you should\u00a0do the following:<\/p>\n

    \n
  1. Deposit all checks and payments immediately<\/li>\n
  2. Find out when is the latest you can make a payment on all of your bills without incurring a penalty<\/li>\n
  3. Invoice your customers frequently (every 15 or 30 days)<\/li>\n
  4. Collect on all receivables within 60 days<\/li>\n
  5. Streamline your inventory buying process (don’t buy what you can’t sell in a timely manner)<\/li>\n<\/ol>\n

    Managing your cash flow effectively will help you take control of your business finances once and for all.<\/p>\n

    Your Options to Survive a Shortfall in Cash Flow<\/h2>\n

    If you’re facing a shortfall in cash flow you have a few options at your disposal:<\/p>\n