9 ways to improve your small business cash flow

Posted March 23, 2017

You can never do too much to improve your small business cash flow. Here are nine top tips for optimising your small business finances:

1. Recognise ‘scope creep’

Check you’re not providing more in terms of products or services than you’ve promised, which can easily happen over time.

Give something back to clients who consistently pay on time. Maybe offer a small discount or free extra after a year of timely payments.

Secure future sales, receive cash up-front and schedule resource procurement in advance by adopting a subscription-based model.

New technologies could save your company thousands, or be an expensive mistake. Always analyse cost-effectiveness before committing to invest.

Interest rates have held at low levels for the past few years, so now is a good time to ask lenders to renegotiate your fixed debts.

It might mean spending time saving before you invest. But, switching from credit to hard cash can free you from unnecessary interest repayments.

Open a high interest savings account for larger sums. This way, you’ll earn an extra top-up with no additional effort.

If you have to use credit, find a business credit card with cash-back and take full advantage of the grace period.

Use advanced accountancy software like Xero to track your cash flow accurately with help from a dedicated small business accountant.

Call on 3 Wise Bears for more expert small business accountancy advice.