5 Ways to Improve Your Cash Flow
Cash flow is the lifeblood of your business and can put your business in a more stable position with buying power. Having positive cash flow for your business indicates your ongoing ability to generate and use cash, giving you confidence for your future. Here are 5 tips to consider when evaluating your current cash flow and strategizing improvements.
Make detailed projections of your anticipated cash flow to highlight any point in the future where you might come up short. This will position you to proactively prevent cash flow challenges. Start with a list of common expenses to keep track of.
2. Family Income Needs
As a business owner, your family is significantly impacted by the cash flow of your business and in your personal financial life. Use a cash flow worksheet to get started.
Having the right protection as a business owner can help to lower your risk should you become ill and unable to work, which can significantly impact your cash flow. Consider your coverage options.
4. Manage Your Accounts
By keeping your personal and business bank accounts separate, especially your checking accounts, your business income and business expenses will be clearly documented, giving you a more accurate view of your cash flow.
5. Simple Record Keeping
Follow 4 simple steps to keep your record keeping simple for daily, monthly and annual records.