
Cash flow management is an effective tool for keeping track of how your business is doing financially. However, monitoring the balance sheet is only one piece of the puzzle.
Tips For Cash Flow Management
By implementing the following tips, you will find cash flow management will become easier to do as time passes.


Plan Ahead
The cash flow of your business today will be different tomorrow. This week will vary from next week and so on. It helps to work with a 12-week rolling cash flow forecast to have a cushion to deal with the unexpected.
Order Just What You Need
One way to skew your cash flow management data is to constantly over order and hold extra stock on hand that doesn’t move. Chart what sells seasonally then use that as your framework and order accordingly.
Don’t Leave Debts Outstanding
Invoicing is sometimes one of the most frustrating parts of any startup. You want to be flexible with collections, but you still have bills to pay. Have firm collection terms and stick to them. Debtors will respect that.
Negotiate Payment Terms With Suppliers
It may be difficult at times to keep up with payments to suppliers. This is why it is so important to build a good relationship with them. You may find some will be open to flexible payment terms seasonally to help you out.
Consider Invoice Financing
It is not easy winning large contracts with huge corporations. Some will work with you, but they will expect you to be flexible with your invoicing. This can be difficult unless you sell the invoices to a financier. It will cost you a portion of the invoice total, but it keeps your cash flow intact.
Invest When Possible
Investing in your company is quite simply good business. It ensures the growth and stability of your startup. However, it also costs money. Sometimes you need to turn to an outside investor for the cash. This is not a bad idea if the growth potential is obvious and about to happen.
Hire Culture First
When your startup grows, you are going to need more staff. Hiring based on qualifications and experience is not always the best way to expand. Hire those who fit within the framework of the company culture instead. They will prove to be better fits and will onboard quicker saving you time and money bringing them up to speed with everyone else.
Use Digital Tools
Tracking cash flow can involve complicated calculations. Use digital programs and online platforms that make this easier for you. There are countless software programs available that are designed specifically for startups and have the scalability to meet the growing needs of your company.
Have A Long-Range Financial Plan
The further ahead in the future you can develop cash flow projections, the easier it is to prepare for expansion or a corporate takeover. Whatever happens to your business in the future is anyone’s guess but when you have a long-range financial plan, you can anticipate changes better.
Don’t Ignore The Signs
As every startup experiences at one time or another, there may be a time when a business suffers such a blow that recovery may not be possible. It may be a sign to either scale back or close the doors. Cash flow management will help you make a data-driven decision either way.
Seek Partnerships
Sometimes a new product sold by a competitor may be a good match for an existing product in your inventory. By working together, a partnership saves both parties money and increases sales revenue. Don’t let an opportunity like this get away because it involves competition.
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Startups are difficult at the best of times. Let the best business coach in Brisbane help you get a handle on cash flow management. Action Coach Business Coaching can help you work towards business growth. Contact them today. ACBC is your Brisbane business coach. Call today for assistance.

Conclusion
Cash flow management is a lot like tracking the blood pressure of a startup. It will tell you a lot about the condition of your business and reveal where you may have to make changes to meet financial commitments. It also gives you a handle on what your business is doing and directs growth and progress. Without effective cash flow management, there is no way of knowing where your startup stands financially. Fortunately, there are various tools and techniques that you can use to track and improve the way your business operates. For assistance, contact your best business coach in North Brisbane.