Small Business Cash Flow_small.jpg  90% of small business failures are caused by poor cash flow. Put simply, not enough cash coming in the door and too much going out. Getting paid on time and managing your outgoings is critical to business success. Here you will find all you need to know about ensuring you get paid on time and developing effective cash flow policies.
Cash Flow Karma
For most small businesses, there will come a time when cash is tight and you struggle to pay your invoices. It's a sobering thought and so is the idea that if you pay late it could force a chain of businesses to do the same, initiating a cruel cycle. Avoid cash flow karma by taking steps to positively impact the payment cycle.
Stock effects cash flow
Being aware of your stock movements is pivotal to making sure you're not facing a cash flow crisis. The last thing your business needs is to face a shortage of cash because you've over estimated your stock requirements and as a consequence all your money is 'sitting on the shelves'.
What is good and bad debt?
Debt is widely regarded as a negative thing and for good reason  - who wants to owe someone else money? While this is for the most part a healthy perspective, the reality is that at times it is necessary and even advantageous to take on a sensible amount of debt, provided a plan is in place to pay it back.
Are customer payment habits costing you money?
Customer payments habits have a significant impact on business cash flow. The latest research from Dun & Bradstreet reveals that more than half of Australian executives are being negatively impacted by late payments even though payment behaviours improved slightly during the June quarter.
Collection letters - keep them simple
Writing a debt collection letter is never a pleasant experience (why would it be - you're chasing money!) but it is a task that most SMEs will have to perform from time to time. However, the process can be made less stressful by following some simple ground rules that will help your debtor understand the issue and help you get paid!
Are you up to date with your customers?
Many SMEs have a relatively small number of loyal customers with whom they have built a trusting relationship over many years. These customers are responsible for a significant portion of an SMEs revenue and are relied upon to provide a stable source of ongoing income for the business.
Securing yourself against Cheque Fraud
Cheques are often used as the mode of payment for various business and personal financial transactions. However, cheque fraud is an alarming concern, estimated to cost Australian businesses somewhere between $800 million and $1 billion (2007).
Short on cash?
It's every small business owner's nightmare    - you're short on cash and you can't pay all your bills. When your cash flow falls short, it can be embarrassing but remember that you haven't failed    - it happens to most businesses at one point or another. Hold your head high and remember that the survival of your business depends on what you do next.
Invoices impact payment
The quality of your invoices will impact the time it takes for your business to get paid. Don't let payments blow-out because your invoices aren't up to scratch, increase your chances of getting paid on time by reviewing your invoice process.
Get paid faster using smarter invoicing
Most small businesses recognise the financial difficulty of having clients who are slow paying their invoices. Understandably most also believe the power to change this is in the hands of the customer.

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