Every business needs a healthy volume of cash flow. The absence of this cash flow can cause a lasting impact on the business. You must have heard elders suggest you not to chase behind money. But what we feel is; it is okay to be money-minded. But too much of anything is wrong. Here are the 12 best ways to increase cash flow into your business.
Do detailed planning
Before deciding to give your customers service, do detailed planning. Consider how many outstanding invoices will be healthy for your company. Make a proper strategy and stick to them. If you are not sure about the strategy, then you can contact a chartered accountant. Discuss your vision with them, and they will help you to achieve your goal.
Offer discounts to the customers who will pay before the stipulated amount of time. Everyone loves discounts and offers. So, choosing this method might motivate your customers to pay faster.
Make detailed reports
Making detailed reports is vital. If you have accurate reports, you will understand how much payment is due. Otherwise, your customer might get away by not paying.
Also, making a report isn’t everything; the reports must be made regularly. Maybe a weekly or monthly report might work. Having trouble making the report? Why not choosing a chartered accountant firm?
You will get reports that are made by experts in the industry. Also, they will be error-free and will be present at your fingertips.
Alert your customers
Customers tend to forget that they need to make a payment. So, as a service provider, it is up to you to alert the customers about their payment much ahead of time.
Alerting a day or two before will not be helpful. You need to notify them about their payment a minimum of 3-5 days before the date of the payment.
ECS is a good option
Yes, this will be a good move for your business if your billing is fixed at certain intervals. Ask your customers if you can get a signed form for ECS transfer. If you have their database, it will be easier for you to get the payment. You can directly contact the bank and let them know about the due payment.
In this way, a customer will be saved from your nudging. And you will get the payment on time.
Check your billing staff
This is an excellent place to look into. If your invoicing and billing staff are too harsh, then it will chase your customers away. On the other hand, if they are too light on the invoicing, you will not get any cash flow into your business.