Often, easier said than done– improving cash flow is simply increasing money coming in and decreasing money going out. The more money you collect from customers and the less money you spend on expenses the better… easy, right? 😉
The theory on getting paid is: the sooner you send an invoice, the sooner customers will pay.
Rule #1: Don’t wait until the end of the month to send out invoices… don’t even wait until the end of the week. Send them immediately after each service.
Fieldwork will allow you to automatically email invoices in PDF format, so your customers will receive them immediately upon completion. In addition to the post-service email, your customers will also have direct access to invoices via the Customer Portal and when you enable online payments through Paypal or Stripe–your customers can pay their invoices online without delay.
Rule #2. Make deposits promptly. When you receive money from customers, get it into the bank quickly so it will be available to spend.
This week’s new feature makes this process even easier. New fields to look out for are: Payment status, Closed Date, Closed By, and the Deposit Report.
Rule #3. Ask customers for payments upfront. Fieldwork allows you to make Pre-Payments on accounts and then pay invoices with the credit on a later date.
A few tips on conserving your cash:
#1. Don’t pay your bills before they are due. Make sure you pay on time, though. The exception to this, of course, is when you receive a discount for early payment. Take the discount.
#2. When possible, use electronic transfers to make payments on their due date. This ensures that you don’t pay late but you also keep your cash as long as possible.
#3. Minimize expenses. Cutting down on wasted materials and resources is a sure method of reducing expenses.