Amanda Holges talks about Business Finance and 3 Ways for Improving your Cash Flow, including helping you save money today.
The figures in your business are important. Knowing when you are due to be paid, and balancing that with your suppliers and outgoings, should be something you keep on top of. If all you know is the Tax due in a blur of figures, then you aren’t working your numbers effectively.
This tip is part of a series that look at the key issues I help with as part of my Mentoring & Masterminds. Check out the other videos in the series on my Blog
Download my ’10 Ways to Improve Your Cash Flow’ at: amandaholges.co.uk/CashFlow
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– Today is all about Business Finance. And before you tune out, I also hope to save you money, so keep listening.
What does accounts and bookkeeping mean to you? A scary subject with a jumble of figures you don’t understand?
Piles of unsorted invoices and a struggle to get your tax forms in?
Something your accountant sorts, or perhaps you have an app or a love for spreadsheets that keeps you updated with your figures.
However you do it, the figures in your business are important.
Knowing when you’re due to be paid and balancing that with your suppliers and outgoings should be something you keep on top of. If all you know is the tax due in a blur of figures once a year then you aren’t working your numbers effectively.
I’m not going to go into profit and loss accounts, balance sheets and cash flows today, That is definitely more than a five-minute video. But I do want to show you the importance of keeping an eye on the figures regularly to help balance your cash flow.
So here are my three ways to make sure your money is working best for you – and not someone else.
Number one – Ker-check you Kerching! How often do you check your cash flow? That’s the money coming in and out of your account. If you’re not checking it each month then you need to make it more regular. If you’re checking it each day then you’re probably checking it too often and causing yourself more stress and wasting time that’s better spent elsewhere. Depending on the number of transactions, somewhere between every few days and once a month is good.
Have a regular day for doing payments and spread your direct payments across the month rather than them all at the beginning or the end. Try to balance the incoming sales with the outgoing bills to save you the rollercoaster highs and lows
Number two – Overdue and Out of order. Look to see who has paid you and more importantly who has not, and chase them. Has a subscription payment not gone through that you’re expected, or an invoice not been paid? It’s important to keep on top of things like this and chase the payment.
If you’ve done your part, then they need to do theirs. Take a gentle approach at first, but if the amount remains overdue then you need to take stronger action.
Number three – Beware of the Gym Subscriptions. Check your statements when they come in or monthly online. Have you got the equivalent of a gym membership somewhere on your account? Something you’re paying for but not really using If so, cancel the unnecessary expense.
When was the last time you checked your suppliers are still giving you the best deal for your insurance, utilities and stock etc? It is easy to just renew stuff or remain on the same deals even though things may have changed in your business. Check regular payments to see whether you can be getting a better deal and renegotiate.
So there’s my three.
If you would like more ways to boost your cash flow, then head to amandaholges.co.uk/CashFlow and download my ’10 Ways to Improve Your Cash Flow’ now.
Take just 10 minutes, look at your most recent statements and check to see if there’s anything that you could be saving on. A few pennies or pounds soon mounts up, and these are important to keep in your business for you to finance your next great idea, and not funding someone else’s company.
Let me know in the comments below how much you could save yourself, and download my ’10 Ways to Improve Your Cash Flow’ now at amandaholges.co.uk/CashFlow to find other ways to boost it.
In the next Business Growth Tip I’m going to look at how Technology should be your friend – but it might need some taming.
Until next time, Speak soon.