What is a cash flow?
Cash flow is the money that moves in and out of your business every month.
The first mistake with cash flow that business owners make
The most usual mistake that is done is mixing personal and business funds.
Very often entrepreneurs believe that they will just test an idea and the lack of self-confidence in business makes them forget about necessary business accounting rules. It is best to start managing your business seriously like it is a big company then you won’t have any problems in the future. When bookkeeping time comes, and tax returns need to be filed, your accountant cannot be blamed for the mess that you created before.
If you are taking your business seriously, your financial reports are the health mirror of your business for your future partners, investors, employees, banks and financial authorities. Why would you want to ruin your reputation just because you didn’t have 2 hours to integrate the system from the beginning?
Make sure that your family or someone that you are sharing finances with is always on the same page. From the day 1 let them know about the projected cash flow of the business. Mixing is still easy but taking care of the mess is very very hard. We hope that the quote about life trajectory will help you choose the best option.
“Your life is a trajectory. Every choice you make alters that trajectory, in a positive or negative way. Will you categorize that dinner with friends as a business expense? Will you be honest with your daughter? Will you take more credit than you’re due? These are just the small questions that we face every day….”
So how to manage my business expenses?
No matter if you have a small business or solo entrepreneur, there are tools today that can easily manage your expenses. A lot of spending is done on the move, therefore, apps that can be used on mobile phones and synchronize to your accounting software.
- First of all, pay yourself a salary that you know you won’t exceed. Treat yourself as an employee of your company when it comes to business transactions and payroll It will do both- will help you manage your business cash flow and stay on a budget when it comes to personal expenses.
- Set a budget for the business. Setting budget is hard for everything – for holidays, for groceries and for business too. Be strict with your set budget, and you won’t regret it.
- Collect receivables instantaneously. Try to make all bills “due immediately” and limit the use of net terms longer than 15 days. How to make sure that payment arrives early? Discounts are the answer. Offer deals, discounts for your clients if they pay first.
- Be very smart about hiring. Hire people that can work and want to do work every day. Successful recruitment saves a lot of money and grows small companies to big corporations.
- Use technology and apps.
Yes, Red Cappi is all about software and apps that will help you build a business without stealing your time.
Therefore today we hope you will start using Expensify.
It is a trusted app and used by large enterprises. Simply because it is easy to use it.
You can create expense reports with Expensify – you scan your receipts and synchronize them with your accounting system. No need for millions of receipts in your box.
What about invoices?
No problem. Integrate Expensify with Saasu invoices.
How? Through Zapier. Zapier always makes it so easy!
How can marketing help you get a grip on cash flow?
First of all marketing drives sales. Everything that drives sales provides you the positive flow of money into your business bank account. However, marketing also can make you lose money if you do not manage it strategically.
Marketing has both short term and long term goals depending on the strategy that you choose.
Understanding your marketing metrics can make a huge difference. Continuous monitoring of the ROI of the campaigns includes:
- Setting SMART goals
- Monitoring PPC
- Monitoring SEO
- Finding channels with free traffic
- Finding free PR opportunities
- Establishing both – long terms and short-term goals of your marketing efforts.
In the same way, the clean email list is one of your priority long-term goals in digital marketing.
Therefore, Red Cappi team has created a simple solution for you to manage your email list.
We hope that this article will equip you with simple solutions to grow your business without any troubles. So easy a baby can use it.