Cashflow is often the most important thing for any business, large or small. Improving your finances must be done if you are failing to make a sustainable profit, but finding a formula to improve your business is no easy challenge. However, there are several steps you can consider to move towards a healthy profit.
Coleman & Co will help all businesses throughout the Lisburn area with their finances. No matter what advice or services you require, our team can improve your financial performance.
Chase Your Customers
The majority of your customers will make their payments on time and cause no hassle to your business. However, there will always be some clients who decide when their payments should be made. Even if this is just a small section of your customer base, every payment should be chased.
If you are failing to make a large profit, receiving all the payments that you expect will ensure your revenue matches your expectations. Whilst this may not be the perfect solution, it prevents too many customers missing payments. If this becomes a common factor, revenue will continue to drop. By chasing customers, you resolve the issue quickly and ensure payments are made on time.
Know Current Costs
Every business has expenses. Whether this is daily or monthly costs, it is important you know every detail and remain in control. Regardless of how little or large each cost is, by having the knowledge of your expenses, you can manage all costs effectively.
If you fail to manage your finances effectively, when costs rise or fall, you will be very unaware. This could lead to your costs increasing significantly without you being able to prevent this. By knowing your current business costs, you can create an effective budget to ensure you never overspend on a daily or monthly basis.
Plan For Growth
According to Bloomberg, “8 out of 10 entrepreneurs who start a business fail within the first 18 months”. Whilst some businesses may have enough cash to easily start a business, this is a worrying statistic for most start-ups. If you don’t have the right cash available to you, keeping your business afloat is the biggest challenge for anyone.
To be a success in the long-term, sometimes you have to take things slow in the short-term. Instead of trying to get your business to be the next big thing immediately, planning for growth can ensure your business doesn’t fail like many others. Budgeting from an early stage and planning for growth in the future means making an early profit much easier.
Another way to track your customer payments is by managing your invoices online. To stay in control of your own finances, using the best software gives you the platform you require. Invoice software not only allows you to send your customers their payments straight away but also means you can store and track their previous transactions.
You can use this to compare your current cash flow or ensure customers have made payments on time. The right software should always be installed for accurate and on-time payments or you should outsource to an accountant.
Your invoices are one of the best ways to track and record the payments your business receives. You should always have full management of your cash flow and invoice management will always assist.
For more information regarding the services we have available, speak to our team today. Coleman & Co will work throughout Lisburn to provide all clients with a personal and comprehensive accountancy service. If you require assistance with your current finances, we can always meet your needs. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.