Newcastle Accountants | Maitland Accountants | Bottrell Offices located in Newcastle, Maitland. Your local Accountants, Tax Agents & Advisors in Newcastle & Maitland.

Email OUR TEAM
Call NEWCASTLE
Call MAITLAND
Bottrell Accountants | Newcastle Accounting Firm | Maitland Accountants
Menu

40 x Actions/Tips to Maximise Business Cashflow

As a Newcastle Accountant, one of the most important aspects of managing your business is maximising cash flow. Maximising cash flow means optimising the amount of money that is coming into and going out of your business. By doing so, you will have greater financial stability and the ability to make more strategic business decisions.

In this article, we will discuss 40 actions you can take to maximise your business cash flow, 20 for income/receipts and 20 for expenses.

20 Actions for Income/Receipts:

  1. Offer discounts for early payment: By offering your customers a discount for early payment, you can encourage them to pay you faster, which will improve your cash flow.
  2. Use automated payment reminders: Automated payment reminders can help you to follow up on outstanding invoices more efficiently, leading to faster payment.
  3. Accept online payments: Offering online payment options can make it easier and faster for customers to pay you, which can improve your cash flow.
  4. Set clear payment terms: Ensure your payment terms are clearly stated on your invoices and agreed to by your clients to avoid confusion and delays.
  5. Use recurring billing: For businesses that offer ongoing services, using recurring billing can help you to collect payments more efficiently.
  6. Consider offering payment plans: Offering payment plans can help customers who may be struggling to pay in full upfront and still ensure regular cash flow for your business.
  7. Invoice as soon as possible: Send your invoices out as soon as possible to reduce the time it takes for you to receive payment.
  8. Follow up on unpaid invoices: Regularly following up on unpaid invoices can help to reduce the number of outstanding payments.
  9. Use credit checks: Conduct credit checks on potential customers before offering them credit terms to reduce the risk of late payments.
  10. Set credit limits: Set credit limits for customers to ensure you are not extending too much credit and risking late payments.
  11. Leverage customer relationships: Strong customer relationships can lead to quicker payments, so it’s important to build these relationships.
  12. Diversify your customer base: Having a diverse customer base can help to reduce the risk of late payments if one customer fails to pay.
  13. Monitor your accounts receivable: Keep a close eye on your accounts receivable and follow up on any overdue payments.
  14. Offer loyalty programs: Reward loyal customers with loyalty programs that encourage repeat business and prompt payments.
  15. Consider offering early payment incentives: Offering incentives for customers who pay early can help to improve cash flow.
  16. Use invoice financing: If you need access to cash quickly, invoice financing can provide you with an advance on your unpaid invoices.
  17. Monitor your billing accuracy: Ensuring your billing is accurate can reduce the chance of delayed payments and disputes.
  18. Provide detailed invoices: Detailed invoices can help customers to understand what they are paying for and reduce disputes.
  19. Offer discounts for large orders: Offering discounts for large orders can encourage customers to make larger orders and pay more quickly.
  20. Send thank-you notes: Send thank-you notes to customers who pay on time to maintain positive relationships.

20 Actions for Expenses:

  1. Use a budget: Having a budget in place can help you to manage your expenses and avoid overspending.
  2. Negotiate better terms with suppliers: Negotiating better terms with suppliers can help you to reduce your costs and improve cash flow.
  3. Use expense tracking software: Tracking your expenses with software can help you to identify areas where you can reduce costs.
  4. Review your insurance policies: Reviewing your insurance policies can help you to ensure you are not overpaying for coverage.
  5. Reduce unnecessary expenses: Regularly reviewing your expenses and cutting unnecessary expenses can help to improve cash flow.
  6. Leverage technology: Using technology can help you to streamline processes, reduce costs, and improve cash flow. For example, using cloud-based accounting software can help to automate financial management tasks and reduce the need for manual processes.
  7. Outsource non-core functions: Outsourcing non-core functions, such as IT or human resources, can help to reduce costs and improve efficiency.
  8. Negotiate payment terms with vendors: Negotiating payment terms with vendors can help to improve your cash flow by extending payment periods.
  9. Use energy-efficient equipment: Energy-efficient equipment can help to reduce energy costs and improve cash flow.
  10. Analyse inventory levels: Analysing inventory levels can help you to reduce storage costs and avoid overstocking.
  11. Implement cost-cutting measures: Implementing cost-cutting measures, such as reducing travel expenses or office supplies, can help to improve cash flow.
  12. Rent equipment instead of buying: Renting equipment instead of buying can help to reduce upfront costs and improve cash flow.
  13. Consider bulk purchasing: Bulk purchasing can help you to reduce costs and improve cash flow by getting discounts on larger quantities.
  14. Use cost-effective marketing strategies: Using cost-effective marketing strategies, such as social media or email marketing, can help to reduce marketing expenses.
  15. Monitor utility costs: Monitoring utility costs can help you to identify areas where you can reduce energy costs and improve cash flow.
  16. Pay bills on time: Paying bills on time can help you to avoid late fees and maintain positive relationships with vendors.
  17. Use credit cards strategically: Using credit cards strategically can help to improve cash flow by taking advantage of rewards programs or delaying payment.
  18. Re-negotiate lease agreements: Re-negotiating lease agreements can help to reduce rental costs and improve cash flow.
  19. Review payment schedules: Reviewing payment schedules can help you to identify opportunities to delay payments without incurring penalties.
  20. Implement employee cost-cutting measures: Implementing employee cost-cutting measures, such as reducing overtime or offering voluntary time off, can help to reduce expenses and improve cash flow.

Maximising business cash flow is essential for the financial health and stability of your business. By implementing the actions outlined above, you can improve your income/receipts and reduce your expenses to optimise your cash flow. As a qualified Chartered Accountant, Tax Agent & Financial Planning firm located in Newcastle East, Bottrell Business Consultants is here to help you manage your business finances and implement strategies to maximise your cash flow. Contact us today at 0249336888 or email us at office@bottrellaccounting.com.au to learn more.

 

Newcastle Office

If you want to contact the Newcastle Accountants & Advisors, you can reach us by phone at 02 49336888 or by email at office@bottrellaccounting.com.au.

Our Newcastle Accounting office is located at 45 Hunter Street, Newcastle.

If you have any questions, please don’t hesitate to contact the Newcastle Accounting Team; we look forward to working with you!

Your Newcastle Accountants & Business Advisors!

The Newcastle team are available for appointments Monday to Friday. Call today 024336888

Helpful Articles (Links)

Professional Services (Links)

Bottrell Accountants Newcastle  – Socials & Links