Small Business Show

10 Tips for Managing Your Cash Flow

The Small Business Show Podcast

Join us today as we dig deep into a topic from Episode 185 of The Small Business Show: The Importance of Managing your Available Cash and How to get through the inevitable cash-crunch when it hits you, and in addition, resources guide at the end to make these goals more achievable!

Tip #1 : Don’t Fall In Love With Profit

Profits and Losses only tell part of the story, make sure you’re looking at your cash balance/cash flow statements as well! Make a rule with yourself to check cash statements before you look at profits.

Tip #2 : Import Your Data Weekly

Having accurate numbers is vital. Here are some great tools to try.

FileMaker: previously known as FileMaker Pro, can be used to produce custom applications for enhancing your productivity and operations.

QuickBooks: Explore all the plans and resources here.

AccountEdge: Small Business Accounting Software

Tip #3: Profits are For Others, Cash Is For You

Working Capital is WAY more important than profits when making business decisions for yourself. Implementing strategy or change in your organization takes working capital that can be invested, not profits that cannot be reinvested.

Tip #4: Matching Terms

Match your receivables to your payables. What’s held up in your inventory? Learn More Here: https://www.accountingtools.com/articles/what-is-three-way-matching.html

Tip #5: Negative Cash Flow

What’s your outflow and expenses?Can you size these down in any way? Be Resourceful when purchasing,Buy things used or at auction.

Tip #6: Cash Crunches are Inevitable

Credit can become capital when you’re in a pinch and need liquid capital! Just make sure to not overspend!

Tip #7: Dump the Junk, Get Cash

Accept your suck costs, have a blowout sale or loss leader sale, get what you can out of unmovable inventory and free up space!

Tip #8: Slow Down Your Accounts Payable

Who MUST be paid now? Prioritize and Analyze your Bills

Tip #9: Term Out Credit with Your Bank

Convert your credit debt to a term loan with your bank

Learn More Here: https://www.investopedia.com/terms/t/termout.asp

Tip # 10: Measure Everything!

Keep Measurements of everything coming in and out of the company. Profits, losses, employee expenses, payments, inventory, ect., using the tools mentioned above.

More Resources:

Daniel Blue: Quest Education at YourQuest.com

Listen to our Episode with Daniel Here: https://www.businessshow.co/daniel-blue-founder-of-quest-education-small-business-show-episode-272/

Trello : Collaborate and Manage Your Projects

GarageSales: Manage Your eBay Business

GaragePay: Manage Your PayPal Invoices

Evernote: Stay Organized

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