Healthy cash flow is critical to business longevity and for many organizations from large enterprises to SMBs it is often a major challenge. It goes without saying that profitability is the benchmark for success in business, but even a profitable business can fail without steady cash flow. After all, profits can only take you so far if you don’t have the cash to keep the light on.
With that in mind, we are sharing a few tips offered by Entrepreneur.com for maintaining healthy cash flow.
- Spread payments of your business bills out over time. Paying them all at once can drain your disposable income and leave you at risk of not being able to pay your creditors and suppliers if an unexpected expense occurs.
- Pay your bills closer to the due dates and negotiate with vendors to possibly extend your monthly payables to 60 or 90 days.
- Prioritize payables. Pay your most important bills, such as rent, critical software subscriptions and payroll, before paying less important bills.
- Check with your vendor to see if you can receive discounts for paying any bills early.
- It may seem obvious, but it is vital to cash flow to pay all your bills before the due date to maintain a good credit standing and avoid late payment penalties
How Fidesic Accounts Payables Can Help You Achieve These Tips
- Keep track of where everything is in the payments approval process
- See who hasn’t made their approvals and is holding up the process
- Capture vendor discounts with fast approvals
- Approve invoices from anywhere with an internet connection
- ACH direct for the most timely payments possible
- OCR technology will change the way you manage your invoices saving thousands on data entry