The rush of the holiday shopping season is upon us! For many small business owners, this often means flaws in their cash flow management system become exposed. Paid staff holidays, slower productivity, and delays in clearing outstanding invoices are standard during the year’s final weeks. And these common occurrences can leave a business with smaller amounts of available cash.
However, with some tweaks, adjustments and sound advice from knowledgeable bookkeeping professionals, your small business is less likely to run into cash flow problems this holiday season. In this article, we’re sharing a few essential tips to help business owners comfortably manage cash flow from now until well into the new year.
Speed Up Payment Resolution
Often, issues small businesses have with year-end cash flow stem from not being more aggressive with collecting payments from customers and clients. The hectic season coupled with office shutdowns may result in accounting tasks landing on the back burner. To avoid delays in collecting funds, take measures to speed up the invoice reconciliation process.
Pick Up the Phone
Opt to call your clients with outstanding balances rather than relying on impersonal digital communications, such as email.
Reach Out Sooner
Connect with clients and customers before they miss a payment deadline. Friendly reminders that a payment is coming due is a great way to be proactive about payment collections and maintain good client relationships.
Increasing the profit margin of each transaction will inevitably boost your business’ cash flow. Finding ways to improve business operations’ efficiency can result in less money going out and more money remaining in-house.
Outsource Essential Services
Outsourcing business services, such as marketing, website development, and bookkeeping tasks, will streamline operations and create a more efficiently running business. Allowing outside professionals to oversee areas that aren’t a shop owner’s expertise creates more opportunities for lead generation and sales to increase.
Review Vendor Relationships
Take a look at your current vendors and look for potential ways to lower costs. Consider sourcing new vendor opportunities that will help lower overhead costs to keep cash flow more available.
Explore New Technologies
There are a growing number of technology tools that small businesses can use to cut back on operating costs and increase sales. And, many of them are either low in price or even free. For example, many online marketing tools have free options that are ideal for growing businesses.
Some good technology options for small and medium-sized businesses to explore include:
- Inventory Management Systems
- Customer Resource Management Systems
- Cloud-Based Accounting
- Online Marketing and e-Commerce Platforms
Consult with Online Bookkeepers For Cash Flow Management Services
Managing cash flow in a small business isn’t always an enjoyable task. And, during the busy holiday season, it can quickly become overwhelming for small business owners if the process is not well managed.
If your company is concerned about maintaining steady cash flow during the holiday season, it’s time to help from professional bookkeepers. To get started on your effective cash flow management strategy, contact the experts at Source Online Bookkeeping.