Iowa City, Iowa
A common reason why businesses fail can be attributed to poor cash flow management. Jeff Nock Iowa suggests that too many business owners focus on revenue, which is the amount of money coming into a business Why is ?
Managing cash flow is crucial for any business to grow. Business growth may require hiring new employees, purchasing more operating equipment, buying more inventory, expanding production output, or entering another geographical region. Without cash on hand, many business owners look to opening more lines of credit which only .
Jeff Nock Iowa – Cash Flow Management Tips
As your business grows, you will need access to more cash. A business line of credit is there to help with cash flow problems, but Jeff Nock Iowa suggests limiting the amount to a percentage of on-hand collateral such as your accounts receivable, large assets, or sale-able inventory. Here are more suggestions for managing business cash flow suggested by Jeff Nock Iowa.
1. Lease Equipment vs. Buying
Jeff Nock Iowa recommends leasing expensive office technology or manufacturing equipment instead of using large amounts of cash. Often, a business can deduct the cost of lease payments made for work-related equipment from their taxes. Other benefits to leasing equipment are you will have a lower initial cost, flexible payments, and typically these companies allow you to upgrade to newer technology.
- Offer Mobile Payment to Customers
Jeff Nock Iowa suggests using invoice payment methods that a business can offer clients, such as electronic pay systems that get you paid faster. payments also make it easier for your customers to pay you. And, with today’s highly secure platforms, Jeff Nock Iowa believes that offering payments make it convenient and safe, while also offers another form of online customer engagement that can later be used for other digital marketing campaigns.
3. Ask for Deposits on Large Contracts
If your business operates on long term financial transactions, Jeff Nock Iowa suggests a system of payment that benefits your cash flow. For example, get a large down payment upon contract approval, then schedule regular payments for each stage of the project. This could apply to any service provider such as construction or home improvement trades where a percentage of payment is due at certain stages and final payment is due after the project is completed.
4. Get Control of Your Cash Flow
Always know your cash balance by tracking your cash flow from today. Jeff Nock Iowa suggests you stay on top of your invoicing after products or services are delivered. As part of your accounting staff duties, make sure they call or email your customers with a gentle reminder, the first day a payment is late.
Jeff Nock Iowa has seen how businesses can fail due to poor cash management skills. By keeping track of your compan cash flow and reducing your amounts of borrowed cash, your company can.
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