A large part of running a business is finding ways of doing things more efficiently. By streamlining processes and procedures you will be able to save time, minimise waste and ultimately increase your profitability.
Working with an accountant is one of the most effective ways of implementing such changes quickly, which will ultimately lead you to be more productive, and subsequently more profitable.
So, with that in mind, here are four top ways to enhance your cash flow effectively.
1. Lease instead of buying
This is especially important for small businesses. While it is true that over an extended period of time leasing equipment will turn out to be more expensive than buying, leasing is far more flexible in terms of being able to alter processes as and when appropriate. It also means you can pay in far smaller increments, which will massively improve cash flow in the immediate term.
2. Incentivise customers to pay early
One easy way of improving cash flow is by giving customers certain rewards – discounts, for example – if they pay for purchases ahead of schedule. This also has the positive effect of benefitting both parties simultaneously.
3. Sort out your inventory
Commit to a detailed stock check and figure out what is selling well and what isn’t. It then makes sense to try and free up space by selling hard-to-move products at a discount and then bolstering your supply of popular items.
4. Prioritise invoicing
Invoicing is something that most business owners don’t enjoy doing, but by getting them sent out as quickly as possible, you will see money in your accounts sooner than you would should you leave them until the end of the month. Also, ensure that all invoices contain the necessary information – including anything around late fees – to guarantee that there is no chance of misinterpretation.
Want to know how else an accountant can help your small business to thrive? Get in touch today with Highwoods & Associates today.