By Kathy Sears
VP, Commercial Banking Officer
Managing your cash flow is one of the most important, yet challenging tasks for any small business owner. It is the life-blood of your organization; it enables you to pay salaries, make investments, and purchase product.
Tips to Improve Your Business' Cash Flow
- Keep track of your cash with a good software program.
Understand how your cash flows in and out of your organization. Are you allowing customers to pay in 60 days when you are required to pay your suppliers in 30? You may be creating a gap.
- Have a good relationship with your lender.
Build that connection before you are in need. Meet with your banker regularly and keep them informed of any upcoming purchases or needs.
- Have excess cash working for you.
Look into interest-bearing accounts when possible.
- Stay on top of your receivables.
Invoice quickly and make sure your customers understand your payment terms.