Many small businesses struggle with one very important component daily - Cash Flow.
The total in Accounts Receivable on your balance sheet is a great number to have. It means you sold some widgets or services, and someone is going to pay you for them. It’s a clear look at your future. A nice amount of money is coming your way. That’s great! But wouldn’t it be even nicer to have that money in your bank account now instead of in your future? While you will probably get that money eventually, how can you shorten the time it takes?
Research has shown that 62% of invoices take 60 days or more to be paid. Unless you’re up for having to deal with the long and expensive legal process of retrieving what you’re owed, it’s best to work with your clients beforehand to prevent late payments from occurring.
If you have a business, you probably know you need to track your income and expenses. But what is the best way to do that? Many small businesses begin the easy way - spreadsheets. But if you’re busy, you will very quickly find that spreadsheets are a tedious way to record everything. Even if you’re an expert at building formulas and creating macros, you’re still doing a lot of manual work. Do you have time for that? No, you don’t. Can you afford to pay someone to do that? Maybe, but your money is better spent on Small Business Accounting Software.
It’s so exciting! You make a sale and you have dollar signs in your eyes. But sometimes those dollars never actually make it to your bank account. You have Bad Debt, and that can be as ominous as it sounds. How do you deal with it?
What if there were an App that connects to QBO and facilitates better cash flow, lower DSO, create fewer Bad Debts and saves you a ton of time? Would you be excited and eager to learn about it? That App does exist; it’s InvoiceSherpa. The following video shows you how QBO and InvoiceSherpa work together to improve each other and accomplish those crucial cash flow objectives.
Problem – Poor cash flow can kill a business. Learn more about it and how to manage it, and you increase your chances of survival.
Eighty per cent of all small businesses fail in the first year. Think about that statistic for a minute. If one hundred people start a small business on New Year’s Day, only twenty of them will be celebrating on the next New Year’s Eve. The other eighty will be trying to figure out what happened.
There are numerous lists that catalogue reasons why new businesses fail – poor planning, lack of understanding of the industry, bad [...]
Roll Up Your Sleeves!
What’s the origin of this idiom? We know it means to get ready for hard work, but why? Maybe this is the reason:
My long-time accounting mentor, called Mr. Mac by friends and family, was born in 1910. By the time I was learning accounting procedures from him, he had already retired from one career and embarked on a new one to “keep busy.” Mr. Mac kept busy into his nineties.
There is much to gain from the wisdom of experience, but my favorite times with Mr. Mac were when he was talking about his early accounting jobs in the 1930s. [...]
If you’re an entrepreneur, managing a healthy cash flow is vital for the survival of your small business. It's essentially the main artery of your company. This is why it’s important to adopt several proactive strategies and anticipate any future peaks or valleys.
A/R , A/P, ROI, GAAP – Accounting seems to thrive on acronyms. But there is one you may not be aware of, and it really drives the success of your business: DSO