Negosentro.com | Money in the Bank: 6 Proven Ways How to Improve Cash Flow as an Enterprise Legal Department | Always looking for a way to increase your cash flow? Perhaps you’re not bringing in as much cash as you projected at the beginning of the year. Instead of continuing to leave things up to chance, you can take certain steps to help improve your cash flow over time.
Accepting Credit Cards
One of the best ways you can increase cash flow is to make it easier for people to make purchases. One way to do that is to accept credit cards. Transactions are made much more quickly and can also be made online.
If you’re not sure how to set this up, Legal Files best matter management can help you with everything so that you can start more purchases much more quickly.
Flat Fee Billing
Flat fee billing is a much better option than sending invoices, as it allows you to collect fees upfront instead of waiting for payment. You get your money more immediately and you can account for your income instead of having to wait until you’re paid. No more having to search through a stack of paper to see who has paid and who you’re still waiting to receive payment from.
Sending Out Bills Promptly
When it comes to billing your clients, you should set a deadline each month to ensure that they’re sent out on time and giving your clients enough time to pay them. You don’t get anything from having your bills sitting around in your desk drawer in your office.
Reviewing Accounts Monthly
Studies have shown that any accounts receivable that are older than 60 days are less likely to be paid. That’s why it’s a good idea to review your accounts receivable every month to see which ones haven’t been paid yet, and then call those clients. You want to ensure that you’re getting the money you’re owed in a timely manner.
Ensure that you get paid in advance. Many times, a client retainer will run out, leaving you with no money to finish your work. Bill your clients additional retainer fees before they run out so that you have a smooth cash flow and fewer collection costs in the long run.
Paying Bills on Time
You can never be sure how much money is in your account each month if you’re not accounting for your bills as well. Exercise good cash flow practices by paying your bills during maximum cash flow periods to ensure you’re on a good schedule. If you pay them too early, you could end up tying up cash that you may need at the moment; paying them late will lead to late fees.
In order to promote good cash flow, you have to be very proactive with managing your money. It may seem like a lot of hard work, but it will be worth it in the end when you can sleep better at night, knowing that you’re financially sound. Plan ahead by eight to twelve weeks so that you can account for any gaps that may occur and deal with them accordingly.