Tips for Managing Your Company's Cash Flow

Boss your company’s cash flow, prepare for slow periods, plan your financing, and have peace of mind with ScottValletBank. Get first-hand tips on managing your company’s cash flow from experienced professionals and learn to use advanced software to streamline your accounts receivable operations.

Why Is It Important to Manage Your Cash Flow?

Cash flow is the blood that keeps the heart of your business pumping, and poor cash flow management will lead to failure. So, it’s crucial for your business to take practical steps to manage cash flow better and put your business on a much stronger footing in the long term. In this way, you’ll be able to take out the stress and gain some financial breathing room.

Use Cash Flow Monitoring Tools to Save Time

There are many cash flow monitoring tools out there that help improve the visibility of your cash flow forecast and save precious time. We will guide you in using simple, collaborative tools that are compatible with your accounting software and deliver automated and real-time monitoring. With these tools, you’ll be able to efficiently manage your cash receipts, anticipate future cash flow pressures, and co-manage as a team by sharing your dashboards in real-time.

Calculate the Net Or Average Cash Flow

Net cash flow (NCF) is a metric that helps you evaluate whether more cash came in or went out of a business during a particular period. It will help you identify positive and negative cash flow. Our team of professionals will help you calculate the NCF considering your cash flow statement from operating investing and financing perspectives. It will reveal if your business is performing well or struggling against bankruptcy.

Look At The Causes Of A Decrease In Cash Flow

A decrease in cash flow keeps business owners up at night. It can eat into their “future plans” savings and might sink the business. As per the survey conducted by The Australian Bureau of Statistics, 60% of small businesses fall within their first three years, with poor or a decline in cash flow as the primary reason. Low profits, over investments, high overhead or unexpected expenses, high/low product pricing, overstocking, or expanding too fast can be reasons for a decrease in cash flow. We will help you address those issues for the sustainability of your business.

How To Improve Your Company's Cash Flow

If you want to improve the cash flow of your business, you need to incorporate better practices for managing your cash flow. Send out invoices to your customers promptly and follow up with late payers. Automate your expense tracking to eliminate manual work and cut unnecessary costs and spending. ScottValleyBank will help you have your numbers back in order.

Tips For Good Cash Management

Good cash management can make the operating cash flow positive and greater than profits. Ensure to properly use your company’s cash resources to keep your business functioning. To make the best use of your cash or liquid resources, you must follow practical tips like avoiding overstocking, minimizing your accounts receivable time, setting cash flow thresholds, and making automated projections based on scheduled transactions. Allow our team to help you to improve cash management at every step of the way.

The Use Of Accounts Receivable Software

Automation is the key to speeding up collecting the receipt and processing of receivables. Accounts receivable software will accelerate your processes and get money into your business more quickly. It will save you from carrying costs on your credit line, sending out invoices and emails to slow-payers, and collecting payments electronically. We will take the burden off your shoulders and use software to improve your cash flow and make your bottom line healthy.

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