3 Simple Tips to Improve Cashflow

3 tips for improving cashflow

I think I’ve read almost every small business finance book in the Tea Tree Gully library here in Adelaide – some of them twice.

I’ve found 3 great tips that I’ll be incorporating into my business.  They are not only an easy way to help increase cashflow but will also help tweak your mindset if you find your confidence flagging.

This is from Accounting for the Numberphobic by Dawn Fotopulos.

Dawn writes:

“Invoices become a running record of the value the business delivered for every client – a testimony of what’s been accomplished.  Listing the benefits the client received is the key to differentiating your product or service from others.  It will remind the client of what makes the business you manage different and more professional than that of your peers”.

She goes on to write “Invoices help to build the reputation of the business”.

Have you ever considered the effect your invoice has on your client when they receive it? Is it possible they look at your invoice and think “How did he get to that price? What exactly did they do in that 8 hours they have charged me for?”

If you’ve poured your heart and soul into providing a great product or service for a client – don’t risk your invoice getting put on the backburner whilst your client pays everyone else before you.  Remind your client of the value you have provided so that paying you is that much easier and they have a great reason to use your business again in the future.

So these are my 3 tips for improving cashflow & boosting business confidence:

  1. Include a detailed description on your Invoice of the service or product you’ve provided and remind them of the value you’ve added for them. Be confident in your invoicing!
  2. If some of the work was complimentary and isn’t being on-charged to the client – include that on the invoice so the client is aware.
  3. If 2 or 3 people have performed the work for the client – include their names to give more meaning to the work.

I’ll definitely be incorporating this into my own Xero invoicing for Festival Bookkeeping – it will only take an extra 5 minutes.  Such simple concepts and easily implemented. Love it.

 Looking for more small business tips? Here are some others that readers have liked:

 

Happy bookkeeping…

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6 comments

  1. Hi:

    Very good advice regarding billing, especially item 1 to provide a detailed description of the service/product. I remember when I was the billing manager in a large law firm, I anticipated potential problems with the large bills we were preparing. By enclosing a description of the services render solved many delayed payments.

    Marguerite Moore
    smallbusinessgurusite.com

    Liked by 1 person

    1. Hi Marguerite. Thank you for your comments. Yes it’s all about communication I think. Taking that extra bit of time to communicate how you came to your charges could reduce the chances of a disputed invoice or a delay in payment. Sarina.

      Liked by 1 person

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