Business owners make mistakes, both large and small. Poor cash flow management is one of the most frequent reasons why small businesses will fail. Here are some ways to improve your cash flow management.
It is important to know at any given time the financial health of your business. Keeping good records and tracking cash flow make this a much easier task. If the stress of doing it all yourself becomes too much you can outsource to the professionals. Many small businesses will have accounting firms help because of the demand and time required.
Plan for the worst. Since we do not live in a perfect world, your sales cycle will probably see cash leaving before it comes in. Having a cash buffer for times where you need cash but the money has not come in yet will allow you to have access to capital.
Try to keep a handle on your spending decisions. Whenever cash leaves there should be a good reason and a clear purpose. Having capital tied up in unneeded expenses at the wrong time could prove fatal for a small business. As always it is important to use your cash to grow your business and monitor your bottom line.
Do you wish you were faster on QuickBooks so that you can spend more time on other important aspects of your business? We decided to compile a small list that will allow you to get the most out of your QuickBooks.
The Basics - Getting to know the basics of QuickBooks is a good place to start. This video provides a good foundation for what follows in this blog.
Customize Reports – Making a template for a report that goes out often will save time as QuickBooks will fill in the report for you.
Keep A Clean Accounts Receivable – It’s good to know where your cash flow is coming from. Keeping your AR clean will give your business a healthy cash flow position.
Class Tracking – QuickBooks allows you to organize data into classes that are meaningful to your business. Classes can be departments, locations, or source of income.
Find Function – The find function is helpful when you know limited information about a transaction you want to find.
Merge Accounts – If accounts become over complicated for whatever reason. It is helpful to merge accounts, vendors, items, employees, or customers that have become redundant or unnecessary.
Link your Email – Linking your email to QuickBooks allows you to easily send invoices and reports directly from QuickBooks.
Set Up Invoice for Online Payment – Not only will this make it easier for your customers to pay you. It will also help you in quickly sending and tracking your invoices. In addition, it helps to clean up your Accounts Receivable.
Online Banking – QuickBooks has online banking you can connect to your bank and you can easily download transaction from your bank. This makes any future bank reconciliations faster.
Memorized Transaction – With memorized transactions you can easily enter a bill, check payment, invoice, or journal entry that occurs often.
Customize Your Toolbar – The toolbar is there to fit your needs. Customize it so it contains your most frequently used functions.
Print Checks from QuickBooks – This makes monthly reconciliations much smoother.
Reconcile Accounts – If you receive a statement for an account and it has a start and end balance is can and should be reconciled. This includes bank accounts, credit cards, loans, and lines of credit.
Back-Up QuickBooks – This is important. If your QuickBooks is not backed up, then catastrophe and many hours of extra work can be headed your way. If you are using QuickBooks Online then it is backed up online already. If not, you can have QuickBooks schedule automatic backups on a schedule.
We hope this helps you get the most out of QuickBooks. If you would like additional help we offer QuickBooks seminars, just follow this link to reserve your seat. If you found this blog helpful leave us a like and a comment below and be sure to check back here for new blogs every month.
The Pathways Team