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Tips for Improving Your Business Finances

Jun 30, 2017

No matter where your business is today, we can always use a better cash flow and more solid financial standing. If you were thinking that it might be time to tap into some connections you have for extra financing, you might want to do some internal housekeeping first.

It can start by looking at the software you use to organize the financial and sales side of the business. There have been a lot of great new products out there, Microsoft Dynamics Ax comes to mind, that can make a difference. This would not be a bad place to start when considering how to improve your financial outlook. Here are a few more ideas.

Who Owes You?

If you have any outstanding debt from vendors and others, now would be a good time to call those in. There could be a number of perfectly good reasons that this debt is not getting paid. None of them really matter. If you have to, hire an agency to collect. It will be worth paying them their fee to get your hands on that cash.

Review Outgoing Expenses

You might be surprised how much you can save when you start looking at little more closely at your expenses. Look at suppliers and see if you can get a reduction in price for prompt payment. Discuss new terms with your bank.

Check out the cost of anything that doesn’t add to the bottom line and make sure it is contributing in some way to the business. Even office supplies can be reduced in price once you start looking at various online suppliers.

What About Your Assets?

Does the business have assets it doesn’t use? You might have property you no longer need, equipment you don’t use or even a storage area that can be used in another way. For some businesses that have been around for a long time this is one area that can surprise them.

Often, they discover that an old warehouse on what used to be cheap land is now worth a lot, and what is in the warehouse is hardly worth keeping. Auction the stuff off, lease or sell off the warehouse and increase your cashflow without any real loss to the business.

We Are Having a Sale!

Of course, there is always the old tried and true for moving some of that surplus stock out by having a sale. If you have products that you no longer offer, now is a good time to clear them out and make some money on them as well.

This is the kind of thing you can even offer initially to your favorite customers through a special mailing. Once you have seen if there is any interest, you can then open up the special prices to the general public. Just make sure you have a way to keep track of stock so you don’t find yourself selling what you don’t have in house.

I am sure there are more ideas beyond these, but you can get the picture from this. When money is tight, or you simply need to clear out old stuff, these all can help. As the economy continues to be unpredictable, it is a good idea to have a strong cash flow and more than a little in the old emergency fund.

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Tactics for Wise Money Management

Jun 22, 2017

Have you ever noticed how the world seems to be divided into two kinds of people? There are those who manage their money wisely and always seem to be able to cover their bills. Then there are those who are living from paycheck to paycheck. You may make the same salary as your best friend, but how is it that they always seem to have a bit of cash set aside for going on great vacations or investing in that hot stock option?

Well, there are some ways that you too can join the money crowd, but first you have to take steps to manage the money you have now a bit more wisely. Here are a few tips to help you get started on that road to smart money management and financial stability.

Buy What You Need, Not What You Want

One of the realities of today’s financial world is that it is all too easy to buy everything in sight. We reach for the credit card and make that instant payment, even if we are on the web. In fact, with the technology available now for instant point of sale online purchasing, you can soon find yourself accepting delivery of expensive new toys you forgot you ordered late one night after a night of drinking with friends. It takes real willpower today to only buy what you need, but the truth is you can get there.

It starts by recognizing that you have a shopping problem and making the vow to stop right now. Put that credit card away and keep yourself on a cash only diet for the next few months. I have even put clients on a strict budget that allows them to only take out a certain amount of cash each week to get them through the week.

Put your bills on autopayment, allocate your money for having fun to a cash only system. This ensures that it stays within budget by limiting how much cash you can take out of your account each week. This will get you into the habit of thinking before you buy. You will soon find that you are only buying what you need, because that is all you can afford.

Pay as You Go

Another important tool is to pay as you go when you are travelling. Instead of splurging on that big expensive item when you are on vacation, keep the cash expenditures to within what you are allowed to spend this week.

You can budget for big ticket items when you are on holiday by planning for them ahead of time. This way the cost is absorbed before you even have time to see interest charges on your credit card. Pay as you go and you will never get behind in your credit card payments again.

Make A Budget

Most of all, learn to stick to that budget. If you have to, you can actually take out envelopes and write down your budget amounts on each, filling them at each pay period and then using them as the week or month goes by.

Budgets are more important than ever in this age of credit card debt and foreclosures on homes. We all tend to live beyond our means, but you can limit your expenses by avoiding paying with credit and only buying what you can afford. It might mean putting off getting that new car or bigger screen but in the end, it will be worth it.

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