Did you know that the most common cause of failure is taken by small businesses, lack of cash operating costs? This happens because of poor cash management. Let not this happen to you. Apply minimize the control and manage your cash effectively to the risk of failure. To do this, you have two bases of the Cash Management: Cash and cash flow to understand.
o Cash - In this context, what is meant in the actual amount of cash available funds in the bank or is> Company. It does not include inventory, it is also not included demands such as real estate or investments. Although this potential to make money, they are not liquid, and therefore can not be called money. In other words, cash is what you use now to pay the bills and run your business can.
o Cash Flow - This refers to the movement of cash within and outside a company. rubles roll is what you want from customers, lenders and receiveInvestors. Entertainment refers to the cash payments you make each month for salaries, supplies and interest payments to creditors. If the cash inflow exceeds the outflow, a company has a positive cash flow. A positive cash flow is a sign of good financial health. In the opposite situation, a company will say in a negative cash flow, a problem for the least to have!
How do you beat that? To begin with, developing a cash flow projection. This should be a dual project - short term (with a weekly ormonthly periodicity) cash flow projections to help manage daily cash needs, and long-term (between one and five years) to fund the cash-flow forecasts higher on your business needs.
For small businesses, the need for a cash-flow management is to be avoided in the first place, extended cash shortages, a common occurrence in expenses for the purchase of materials, payment of license or permit fees and wages may have to be made before the company paid by the customer is.
How canClose this gap cash flow and keep your business solvent? Shorten your cash flow conversion period of the following 5 easy steps that can help to accelerate their money:
1. Collect payments without delay - send your invoices goods are shipped the same day, not one or two weeks later. Enter on your account if the payment is due, and enter the penalty interest for late payment.
2. Track accounts that are overdue - active unpaid bills. Call the company and sendMemories let them know that their account is overdue and the steps that they should not follow are going to pay.
3. Cut costs as much as possible - Take a close look at the cost of the column on the cash flow chart. If all costs are included in this column really necessary? Are there things you can do without? Is there anything you can find a cheaper offer? Answers to these questions will probably end up saving quite a few dollars.
4. Not account for people to pay on time --Remember not to pay people on time. In fact, they have more than once that the payment is to be remembered. In preparing the cash flow forecasts taking into account the fact that it usually takes people to pay more than you think. If you're a long period with credit cards, communications with the company for at least four weeks before the bill is due to make sure it will be paid on time. You can even your customers a discount for paying their bills early.
5. Project, a"Underestimate the worst-case-scenario, exaggerate" - Always your expenses and your income. This way you can be prepared in the planning and liquidity constraints.
To keep your business up and running, you have money coming in regular intervals. All of your cash flow so you can accurately predict potential problems and take steps to remedy the situation.
0 ความคิดเห็น: