top 9 cashflow tips for smes
TRANSCRIPT
Nine top cashflow tips for SMEsCashflow is the lifeblood of your business
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Cashflowis the lifeblood of your
business.Tyro. Innovation that pays.
www.tyro.com
of all Aussie businesses that went bankrupt were SMEs9/10
In the last year
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helpful tips9on how to get your
cashflow right
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1 | Make a cashflow forecastWithout cash, you don’t have a business. You will buy stock, pay wages, leases, tax … you may even want to grow. So knowing what you are up for ahead of time is vital.
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2 | Make it easy to get paidOffer to accept all major cards, be clear about your payment terms, and encourage direct debit or automate payments where you can.
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3 | Get paid immediatelyAre you invoicing on delivery or monthly? The difference could add (or subtract) thousands of dollars to your bottom line each financial year. Why not offer incentives if they pay early?
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4 | Is the price right?Setting the correct price is vital not only to your cashflow but to your business. Too high? Too low? Remember, it’s easier to lower your price than increase it so start on the high side.
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5 | Keep a lid on financesDoing the basics right like streamlining your back office, maximising sales, cutting excess spending, having a good handle on your lines of credit can do wonders.
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6 | Get a better deal from suppliersAsk these questions: What’s my discount for prompt payment? Can I get credit terms rather than cash or deposit? Can you match your competitor’s best rate?
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7 | Update your technologyWhether it’s handling staff rosters, your accounting, taking payments or paying bills, there’s some new tech out there to help you.
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8 | Review your taxesThere may be ways to reduce your tax so get your accountant on the phone.
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9 | Take stock of your stockHaving too much stock not only means you tie up your cash, but it costs you added storage and insurance.
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Want to know more about managing cashflow for a successful business?
Read our Five-Step Guide to a Killer Cashflow.
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