Maintaining good cash flow is important in any successful business, but for small businesses it is paramount. To operate securely, grow sustainably, and take the business to the next level, the importance of cash flow cannot be overstated.
Cash flow is all about money coming into and leaving your bank account – the income you receive via customer payments, interest, and other sources versus the money you spend on business expenses. Conversely, weak cash flow could mean your business will need to rely on credit cards and overdrafts to pay its bills. If you cannot access credit, your company might eventually be unable to continue operating.
Send out invoices promptly and make sure they are accurate. The invoices should contain all the relevant information so clients can pay you on time. If your invoices have errors or are incorrectly formatted, customers will return them to be fixed. This will delay payment, affecting your cash flow.