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If your business is spending more than what it earns, the cash liquidity will be affected and then will dry up in the long run. This is the biggest worry for small and medium businesses. The ability to control, manage, increase and save their cash will guarantee the longevity and smooth process of your business. There are easy steps that businesses can take to combat cash flow issues. Here are the five we consider important.
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Streamline Payment Process:
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Some customers may still need to pay via card, say for retail point-of-sale businesses, which have slow settlement times, but otherwise, you need to be implementing instant payments to have funds settle in real-time.
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Reconcile, Reconcile, Reconcile:
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Credit Control:
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Bear in mind that some people might be slow on paying back, but you can employ credit controller software like Chaser, which send out automatic payment reminders and help with the collection process.
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Cut Costs:
Final Words
In conclusion, smart-business owners stay on top of their cash flow. They understand the long-term importance of monitoring and managing cash flows and their implication to the health of their business. They deploy strategies that make payment easier for customers and as well monitor their expenses by reconciling every invoice with the use of accounting software apps. They also ensure that their credit facilities are offered to those who are creditworthy. Finally, they employ cheaper modes of operation so that they can eliminate all forms of costs and fees. Smart business owners have a fetish for monitoring their cash flows by putting in place facilities and tools that keep them informed on such matters. Featured Image Source: FreepickGot a suggestion? Contact us: editor@connectnigeria.com
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