Reaching a positive cash flow with your business is an enormous milestone. However, the task of keeping the cash flow positive on a daily basis can be a massive burden taken on by business owners. Fortunately, modern technology offers simple solutions that can empower small businesses to take control of their finances and keep their operations running smoothly. Let’s explore how leveraging cloud technology can help your small business improve cash flow and sustain healthy working capital.
Charge Customers ASAP
It’s simple, a customer isn’t going to pay your if they haven’t been billed yet. Sending out invoices promptly triggers payment terms sooner and will reduce your wait time. Utilizing cloud-based online accounting software, like Quickbooks Online, empowers your business to create and send electronic invoices directly to clients via email. Electronic invoices can also give your the ability to configure automatic reminders to be sent for late payments.
Make It Easy to Get Paid
Making it effortless for clients to pay invoices is crucial. Online accounting software allows electronic invoices with direct payment links, enabling clients to settle invoices in just a few minutes. Transitioning from traditional cheque payments to accepting credit cards or online payments can significantly expedite the cash flow cycle. While cheque can take several days to clear due to physical movement, online payments usually clear within a day or instantly.
Streamline with Automated Billing Platforms
Implementing an automated billing platform like Plooto can revolutionize your cash flow management. This platform integrates with accounting software, facilitating the import of unpaid invoices and bills. Clients can easily make payments through email, credit cards, or pre-authorized debits. Additionally, automated gentle payment reminders can encourage timely settlements, reducing the risk of overdue payments.
