We recently spoke about increasing the money going into your business, the other side of that coin is decreasing the amount of money going out of your business. These are just some of the ways in which you can do that, if you’d like to hear more than give us a call. As a bookkeeping company we are always happy to help other businesses with their cash flow concerns;
Look at Payment Practices
Set out a list of all the payments that leave your business and don’t pay them until they are due, the money is better in your bank account than the bank account of another business. If your supplier accepts credit cards then use a credit card to pay your bill as this will give you up to another month to get the bill paid. This is a great way for keeping money in your business longer but make sure you keep it organised. The last thing you want to do is upset suppliers as you’re a ‘late-payer’ or even incur credit card fines due to not clearing the credit card. We can help you set up a system so this is easily managed.
Negotiate With Regular Suppliers
There will be bills that are regular, your recurring bills like the phone, your internet, rent for the office, electricity bills and such like. As technology improves the services you choose become cheaper but your supplier won’t phone you up and tell you that so arrange quarterly meetings with them to make sure you are getting the best deal possible. Have a look at comparison sites where relevant and approach your supplier with this research to make sure you get the best price for what you need.
Adjust Inventory Levels
If you have an inventory for your business take a really good look at it, again this is a service that as bookkeepers, we can help with. Look at the items that could be reduced or that are purchased less frequently and re-evaluate how you order them. Keeping numerous items in stock that are not purchased costs you money so look at keeping less stock of the items that are not as popular.
As we said, these are just some ways in which you decrease the amount of money going out of your business but if you find your business in a cash flow crunch give us a call and see how we can help.