Cash Flow Management

The idea of budgeting doesn’t have much appeal for most people. The reality is that effective budgeting can be liberating and empowering especially when you finally gain control of your finances. We all have a goal of improving our cash flow which is the essence of budgeting, and any business expert or professional athlete will tell you that if you want to improve something, track it. And that’s exactly what a budget will enable you to do.

Once you have these budgeting basics down, you’ll be ready to gain control over your finances and make some serious headway towards achieving your most important financial goals: (more…)

Pay Yourself First

By paying yourself first, you can ensure that you nearly always have a surplus to manage. Establish a fixed dollar amount that you enter into your budget as surplus, or savings. It should be treated as a fixed, essential expenditure that cannot be changed. If, at the end of the month, your budget shows a deficit, then your first course of action is to find areas in your non-essential spending to cut.

You can expect that, from time to time, you will have an unusual or unexpected expense come up, and it may be difficult to reduce your non-essential expenses any more, in which case you may have to cut back your surplus or savings expense. Your mind-set should be to avoid do this as much as possible. (more…)

Cash shortages can prevent you from meeting your financial obligations, and they can make it difficult to plan for the future and expand your company. That’s why you should try to improve your cash flow by making some minor adjustments in your business practices. These seven ideas can provide relief and ultimately change your cash flow:

• Tighten inventory. Keeping too much product on hand can tie up a great deal of cash. Make sure your inventory turns over at a regular pace. (more…)

Cash management is ultimately about cash flow — and very few small businesses are awash in cash. Even successful, growing companies are vulnerable to cash flow problems because they tend to add employees and inventory rapidly. This may quickly deplete the company coffers and lead to cash shortages.

Because having cash at the right time is so important, entrepreneurs must pay close attention to cash management.

Here are some tips for saving money and managing cash flow: (more…)