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Succeed With Cash Flow Management
What is the current collection policy looking like? Do you have a system in place to show customers that their payments are expected in a timely manner? Do you have a time frame as to how soon you will be able to collect the money from the customers? Customers need to know that you are serious as to how soon you need to collect the money. You should focus on getting the customers to make a payment to you now and then collecting money within a specific time frame. If they do not pay, you want to have a clear policy that shows you have interest charges and fees that will end up being enforced on the customers. This helps to motivate people to pay quickly as they don't want to end up with some pretty high interest rates on their bill! Always give people options when it comes to making payments. It is pretty surprising to see that a lot of people do not understand how to pay because the companies do not educate them. Give them the option to pay their bills online. Consider offering other options to pay such as using credit cards, Paypal, Bill Me Later, and other things so people know how to pay and can easily pay quickly. The more you provide the customers with other methods, the easier it will be for them to figure out what needs to be done so they can easily meet the payment arrangements. Do you have a good financial program in mind that you are using? How about investing in a good program like QuickBooks? This will help you out as you are managing the money and you can see where it is coming in and going out. The more you can focus on keeping good records for the company, the more you will be able to work on getting the proper management over your cash flow issues. Do you have a good bookkeeper? You need a strong person in charge to look for the issues that may be happening and to alert you immediately if they see a potential cash flow issue happening. This is the best option to help you out as you want to ensure that your money is not being swindled away and that your employees are focused on saving money rather than spending it. You need to look for a person that really does have the control over the books to prevent cash flow issues from even happening in the first place. Use a business credit card to help you as well since you can place all of the expenses on one single card and have one payment each month. This also helps you to track employee spending to ensure people are not just spending company money without really thinking about it and without putting it through the appropriate people in the organization. |
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