As a small business owner, do you find yourself running into cash flow problems? You might be running on a tight budget, but that doesn’t mean you have to be running out of budget at the end of every month. Instead of limiting your output to absolute bare-minimum, you should speak with your bookkeeper in Phoenix AZ. You can read more about the top 10 recommended solutions to help deal with cash flow issues.
#1: Clear Communication with your Bookkeeper in Phoenix AZ
Make sure you speak clearly and communicate all your business needs with your accountant. They can help walk you through critical decisions such as inventory changes and equipment upgrades. For example, if you decide you need to sell a van, then make sure to discuss the offer and your possible options with your accountant. Timing can greatly influence the cost of selling assets. Additionally, any assets sold within a tax year have to be recorded properly and it may be beneficial to wait before selling anything. Talk through things with your trusted business advisor before making final decisions.
#2: Focus Production On Money Making Products and Services
You should make sure that your business is really making money. Just because money is coming in doesn’t automatically contribute to real, profitable business. Instead of putting effort towards just fulfilling job orders day in and day out, put the work towards those products and services which will make you more money.
#3: Grow Your Sales
After your business is geared towards producing the right products and services, you need a plan to sell them. If you aren’t putting energy into sales at scale, talk to your bookkeeper in Phoenix AZ. They can help you determine how many resources should be dedicated to sales.
#4: The Price is Right With the Help of Your Bookkeeper in Phoenix AZ
Setting your prices at the right point, you can increase your potential to turn a profit. However, marking up prices too high can exclude you from a great window of opportunity. Several customers are looking for products and services in between a sweet spot. To find this sweet spot, you can perform competitor analysis and decide for yourself what your products and services are worth.
#5: Learn the Art of the Up-sell
More than pricing alone, making an upwards offer, or “up-selling”, can be very beneficial to your cash flow. Look for packages and bundles you can include alongside basic services while increasing profit margins. If you can sell an additional two or three products and services at every sale, your profitability could increase significantly.
#6: You Need To Close Accounts Payable Quickly
What’s worse than not having a client? Having a client who doesn’t pay on time. As a business owner, this can be a very frustrating issue to resolve.
There are a few key reasons why you need to close accounts payable quickly. The first reason is that if you don’t close accounts payable in a timely manner, you could end up owing money to the supplier. This could cause some serious financial problems for your business.
Another reason you need to close accounts payable quickly is because you need to make sure that you have enough money to cover your expenses. If you have a lot of unpaid bills, it could put a strain on your finances and make it difficult for you to cover your regular expenses.
Finally, it’s important to close accounts payable quickly so that you can get a good idea of your financial situation. If you have a lot of unpaid bills, it can be difficult to figure out exactly how much money you have available. By closing accounts payable quickly, you can get a clear picture of your financial situation and make decisions about your future plans.
#7: Why Your Bookkeeper in Phoenix Recommends Accepting Electronic Forms of Payment
One of the many benefits of using electronic forms of payment, such as credit cards, is that they offer buyers protection in the event that they do not receive the product or service that they paid for. For example, if a buyer pays for a product with a credit card and does not receive the product, the credit card company will often refund the buyer’s money. This type of protection is not available when buyers pay with other forms of payment, such as cash or a check.
Finally, electronic forms of payment are often faster and more convenient than other forms of payment. Credit cards, for example, can often be used to make purchases quickly and securely. Gain the confidence of your customers and facilitate their purchases as fast as possible.
#8: Keep Office Spending Under Control
There are a lot of expenses associated with running a business, and office spending is often one of the biggest. But it’s important to keep office spending under control, because unnecessary expenses can really add up and eat into your profits.
Here are a few tips for keeping your office spending under control:
1. Make a budget and stick to it.
2. Comparison shop for office supplies and other necessities.
3. Avoid buying unnecessary items or services.
4. Renegotiate your office lease or rent if possible.
5. Invest in efficient and cost-effective office equipment.
6. Consider telecommuting or working from home occasionally.
7. Track your spending and review it regularly.
8. Be creative and think outside the box when it comes to reducing office costs.
9. Ask for help from your colleagues or employees.
10. Stay vigilant and be willing to make changes when necessary
#9: Perform Regular Finance Audits to Optimize Expenses
Finance audits are an important part of any successful business. By regularly auditing your expenses, you can optimize your spending and keep your business running efficiently.
There are a number of different ways to perform a finance audit. One common approach is to review your company’s spending patterns and look for areas where you can save money. You can also compare your current spending to your budget to make sure you’re staying on track.
Another important part of finance audits is evaluating your debt levels. Make sure you’re aware of how much you owe and how that debt is impacting your business. If you have too much debt, you may need to find ways to pay it down.
Finance audits can be a valuable way to keep your business running smoothly. By evaluating your expenses and debt levels, you can identify areas where you can save money and improve your financial position.
#10: Clear Dead Inventory To Save Your Business
When a business experiences a decline in sales, it is not uncommon for them to start clearing out their inventory in an attempt to generate some cash flow. This can be a good strategy, but it’s important to do it in a way that doesn’t hurt the business in the long run. One way to clear out inventory without hurting your business is to sell or clear out your dead inventory.
What is Dead Inventory?
Dead inventory is a term used to describe products that a business has in its inventory that it is no longer selling. This could be because the product is no longer in demand, the product is outdated, or the product is defective.
Why Clear Out Dead Inventory?
There are a few reasons why a business might want to clear out its dead inventory. The first reason is to free up space in the inventory so that the business can start selling new products. The second reason is to generate some cash flow by selling the old inventory, thus giving more resources back to the business.