The way cash flow works in business is simple: when money comes in, it’s put toward expenses. The more expenses you have, however, the slower your cash flow will be—and that’s bad news for your business. From online invoicing software to cash-flow management, here are four strategies you can use to increase cash flow and make sure there’s enough of it at all times.
1) Use Accounts Payable Software
One of your first priorities should be automating your accounts payable process. Online invoicing software can drastically reduce your organization’s cash flow through error-proofing, automation and improved payment tracking. Best of all, it’s often easy to implement even for small businesses that have just one or two employees.
2) Manage Expenses Properly
When you own a business, it’s easy to let expenses run wild. Try using an online invoicing software that automatically manages your cash flow and reduces your company’s overhead. This will help you manage expenses properly and ensure that your business is profitable over time. Last year I reviewed several different products on my website. And I made some extra money in affiliate commission by recommending online invoicing software . For example, one customer bought an online invoicing product from my site , another recommended me as well , but he wanted to buy something else instead of what I suggested him, which was great for me because now I have more chances for receiving referrals! All these are passive income sources since they are automated.
3) Get Creative
We’ve all heard about passive income – making money while you sleep. Maybe you think that sounds good but wonder if it’s really possible or how you can even do it. There are a few ways, and one of them is through generating revenue from your side hustle by offering services as an online freelancer. But what happens when your clients only pay after they’re satisfied? You have to build up cash flow for those days between invoicing and payment!
4) Create Passive Income
For businesses, passive income can mean better cash flow management through improved accounts payable processes. But for freelancers and consultants, passive income can be leveraged in a variety of ways—as you’ll see below. Whether it’s invoicing clients or managing your own personal finances, online invoicing software will allow you to take advantage of passive income opportunities. After all, these are some of our favorite strategies for building wealth quickly.
5) Automate Payments
When you start receiving payments online, it’s crucial that you keep your finances up-to-date. Receiving payments through your invoicing software will automatically generate an invoice, which will allow you to track payments easily and know exactly when cash is coming in. But it’s important not to send out invoices blindly—once your customer has paid, change their status to paid or collecting payment so that there are no confusion down the line.
CONCLUSION
Any small business needs cash. But maintaining a solid cash flow can be tricky, especially if you depend on one income source and don’t want to take on debt. One strategy is taking advantage of passive income: revenue that comes in even when you’re not working. Invoice and time-tracking tools like Invoicera offer plenty of opportunities for revenue generation and cash flow management — just look at these seven ways we use them!
SOURCE: 7 Proven Strategies to Increase Cash Flow with Passive Income
