Most businesses have one common enemy, and that is cashflow problems. It does not matter if you are selling a product or providing a service, in case you don’t get paid on time, your business might be on the edge to fail.
According to the statistics, 41% of failed businesses blame cashflow issues as a primary reason for their failure.
So most small business owners handling invoicing and billing is an unknown territory. So they either transfer all this is accountants and business advisors or try to handle themselves and fail to run it properly.
But as a small business owner, there are several hacks you can do to keep away from cashflow issues and concentrate on your business. Here are some of them:
Separate your personal and business funds:
Even though it seems very simple example, there are a lot of business owners that think they can start and run their business with merged personal and business accounts. But when they start sending invoices, they can come to a situation when they won’t have money.
Follow up invoices quickly:
Most business owners tend to let invoices go late – either because they are caught up with other business relates tasks or they are afraid to look push while chasing payments. This can be solved if you are using an invoicing software where you can create reminders and ready-to-go emails to send regarding your due payments.
Secure your work in the beginning;
Some business take deposits for new customers, finish one part of the project before receiving the payment or find other arrangements to secure that their time and effort will not go to waste and they will be paid in the end.
Use recurring invoicing for regular customers or clients:
Most businesses that sell products and services paid online use recurring methods to keep their customers engaged and keep the money coming each month. If you are using an invoice app or invoicing software – you can use recurring invoicing and not worry if you will get paid on time each month.