Cashflow will always be a core focus of any firm. Having a cashflow plan can help firms in the A/E and professional services industries better control the ebb and flow of business activity.Here are three tips to help your firm achieve a more manageable cashflow strategy.
Know the Business Climate
The weather is what’s happening outside your door. The climate is what is happening everywhere over a period of time. Understanding your business’ (or your client’s) business climate is similar and is essential to understanding and predicting cashflow. Aside from the pandemic, even in normal times, many businesses face cyclical changes. These can be seasonal for some businesses or based on economic factors facing their community.
Business managers need to keep these top of mind when planning and borrowing, making capital upgrades, adding new staff, or when considering other spending issues. Likewise, there may be seasons when supplies or wholesale costs are lower, which can be advantageous if the business can stock up during this time.
Keep an Eye on Financials
Since cashflow may frequently change, keeping open to periodic changes in workflow may be necessary to cope with it. Keeping accurate and up-to-date financials will help businesses keep an eye out for potential up and downturns, helping them be prepared for changes, if necessary. Proactively monitoring cashflow reports can also help when making business growth and other financial plans.
Avoid Cash Flow Crunchers
Expenses are an everyday cost of business, but managers should review them periodically or negotiate to ensure they aren’t missing out on lower costs or alternate suppliers. The same goes for payment conditions and even seeking lower APR credit cards or more amenable grace periods. Conversely, credit cards with rewards can be beneficial in some cases, especially for those with frequent purchasing needs. Businesses can also avoid costly late fees by using automated bill payment systems.
Accept Electronic Payments
One of the quickest ways to get cash into your business faster is to make it easier for your customers to pay you. Surveys have shown that up to 70% of customers will pay or schedule a payment on the same day they receive their invoice, if there are electronic payment options. Advanced billing and practice management systems, such as BQE CORE, include integrated options for accepting echecks and ACH payments from customers, as well as the ability to set up recurring automatic payments. This not only speeds up payment, but also reduces manual processes and the potential for fraud.
Ready to try a free demo of BQE CORE? Contact us today to get scheduled and see just how BQE CORE has helped firms improve their cashflow.