If your cash flow situation is cyclical, create a yearly budget to see how much cash you will need each month to pay recurring bills. Then build in that savings from the higher cash months to see how much you will need. A budget is especially necessary for a startup, and a pro forma...
Cash Flow: liquidity problems and how to solve them! Objective: to know different reasons for liquidity problems There are many reasons fo..
Cash tied up in outstanding receivables is one of the biggest cash flow problems you can have.According to Xero’s figures, almost half of all invoice payments made in 2021 to small businesses were paid late. And if payments are late, it means your ability to invest in yourself gets delaye...
The optimal way to house inventory is to have it in stock for the shortest amount of time possible while still making sure you have the appropriate items in stock for filling orders. This minimizes the amount of assets (including cash, inventory, storage space, & management) you have tied u...
If something unexpected happens that needs cash to fix, and if you don’t know the state of your cash flow, it could delay your efforts to solve the problem. Rain damage to your shop? Urgent repairs to a company vehicle? A need to update your IT inventory for security reasons? Without...
How to solve cash flow problems Set your business up for success by implementing these six strategies to prevent or solve a cash flow crunch.1Offer buy now, pay later options for customers It’s not just big-box retailers who can offer their customers financing. With pay later options, you...
How to solve a short-term cash flow problem. (includes related article)Arkin, Joseph
In addition to looking at the standard cash flow statement and details, it’s often also useful to calculate different versions of cash flow to give you additional insights. For example, free cash flow excludes non-cash expenses and interest payments and adds in changes in working capital, wh...
If sales are off for a month or two, you might not have a huge problem to solve. But it is a good time to make sure you have a plan in place if you start noticing a longer-term trend. Mitigate risks by being aware of them, to begin with, and making a plan to remedy. ...
[Review this roundup of cash flow problems and how to solve them.] FYI When you’re looking for financing, banks or investors typically require you to provide your cash flow statement. See the top small business loans and financing options to learn about more requirements. What is included ...