There is something that you can not afford to forget when you are running
Business from your home-cash is king!
Whether it is a multi-billion dollar empire such as Bill-Gates Microsoft,
Or cash on the street corner of a small mom and pop convenience store
Blood of business life.
Ever soaring interest rates and today's uncertain economy, many small
Limited financial training companies have problems staying
Alive, much more prosperity. In fact, 63% of new businesses do not survive
Six years-And at most work, home people fail within six months!
The main reason is bad cash management. To many self-employed people
Ignore the cash flow until it's too late to recover. Suddenly, presto!
It's back to your office job! We don't want that.
So the big question is: you can manage your cash flow
Effectively? If you do not know, you are on unstable ground.
Remason, Author of Cash, Cash, Cash: Three Principles of Business
Survival and Success, Cash Flow is All About Getting Money from "
Customers pay more, pay bills at the last possible moment, faster
Money to a single bank account, accounts payable management, account
Squeeze any pennies out of accounts receivable, inventory, and more effectively
Your daily business. "
Let's defeat one mason's tip at a time.
High speed collection
Your business should raise money as soon as possible. To do this,
You will be asked to do this. :
(1) Try to fast, we will order by fax for the purpose of meeting your order.
(2) Send out your invoice The same day goods will be shipped, not a week or
Two later
(3) Please indicate on the invoice when making payment and specify the penalty
Interest for late payment.
(4) Bank lock box (post office box
Collect your mail check from the mail time close to the customer)
Customers across the country. Oh, of mail that I picked up with lockbox bank
Clocks, including weekends, process checks and credit to your account.
(Note: this last step is probably more appropriate for corporate profits
More than $ 25 million annually. Thank you very much for your help.
Heart for when you get there!
Deposit check fast!
This seems obvious, but it is very important. In fact, it is here
Six sure suggestions for getting Mason's fastest availability
With a deposit check.
(1) Always deposit checks the same day they were received. Don't grasp
You will lose the float of the day, so check until the next day. Key point: you
If there are 3 days floating in the sun until the check on the deposit Friday
It is Monday
(2) Deposit 0 to 2 days availability of the check. ♪ Don't let ♪
Your bank gives you 1-5 days of customer availability. The
Persistent Ask Japan Bank "availability schedule", can scan
Certainly you have a fast availability of less than two days.
Each bank has its own availability schedule. In this case, check the assignment
Consumer, Business (Commercial Account), and Large Availability
Company account. Availability is the number of days before it can be used
Deposited money by check as cash. For example, $ 1,000 check
You can deposit today and withdraw the availability of the day as assigned
Tomorrow's cash
(3) Do not deposit the check on the bank's automated teller machine.
Since you do not have evidence that you have actually deposited, deposit in the night
Check that you said you did. I accepted this only
Time and amount of deposit at ATM, and you will not get anything
Receipt at night depositor.
(4) MICR encodes the inspection of your customer (using the print machine
Magnetic ink at the bottom of the check) in amount before
If you deposit more than 500 checks each month, deposit them in the bank.
The bank charges less than 3-5 cents for each coding check. Encoding used
The machine costs about $ 1,500. (Bank equipment under Check Yellow Page
For the dealer). There is no other way to save money, but it will be faster if possible
Check availability.
(5) 、 Bank, deposit due
Checks If some banks require a deposit at 2 pm due to your encoded check,
But the bank is 5 pm this deadline.
Otherwise, you lose the float of the day.
(6) Before using the bank ATM for check deposits, locate the bank's
Availability Deadline. Some banks have a cut-off time of 12 noon.
Checks deposited later will be considered as the next check.
Day! In that case, you will lose the float of the day despite doing
Your bit to redeem a check.
Super tau
Debt collection policy
Many people think that it is not a big deal to ignore accounts receivable until then
Bills can be collected. This is a bad cash flow policy. Here seven
Excellent tips for processing receivables:
(1) Please check the financial health of the new customer before offering them
credit. To do this, use an evaluation service such as Dun &
Bradstreet (1-800-234-3867).
(2) Ask a new customer for a business reference and do not ignore it
Call me
(3) does not offer too generous discounts, such as 10% for a 3-day payment.
The better rate is a 1.5% cash discount. It takes less.
(4) To charge a late fee of 2% a month for late payment customers.
Back charge the customer to take the discount after the discount period.
(5) Chase with late taxpayers with phone and letters. They are
A bit extreme, but the first character should go out the daily amount
It is late for one day! After 30 days, start this sequence:
-Send a letter from your lawyer
-Flip account to collection agent
-Collection Attorney
(6) Do not send out new products if bills remain unpaid. Remember
Bad debts hurt your bottom line! Be wary and at least try to get
Periodic payments from late taxpayers.
(7) Automatically "Instruct your bank to deposit the returned check."
Your bank if they offer return item box service. If so, please use it
Redeposit your check and charge back your free bank return items to you
client.
These seven steps are tough and forgiving, but they can make
The difference between a positive cash flow month and a slow month for you
business.
It may seem a bit hypocrite requiring a quick and strict payment
Next, we will do the following. But I am all (almost)
Fair in love, war and business.
Pay your money slowly
Just the opposite of collecting as early as possible, you should
Discounts unless you are on the quick payment date
To do so. Many people believe in staying and paying for the bill ahead
As soon as possible of them, it is just bad cash management. I want you
You can use it with your money. Here are five
Suggestions to slow your spending:
(1) They will pay your bill on the last day they are scheduled.
(2) Try mailing the payment on Thursday or Friday to pick up some extra
Sun mail floats on the weekend.
(3) Use business credit cards for travel, lodging, meals, and small
Costs for yourself and your employees. By credit card
Don't make payment up to 25 days after receiving the statement.
Invest money and use this float. In total, usually
Your money invested for 45 days from the date of purchase.
(4) Don't let employees go forward. They are using their personal credit
Cards and business cards, if you offer them
(5) Consider setting up a separate remote spending checking account
At least a day check clear the state to expand the float. This practice
It is used very well by 17% of large companies. The fault of this
The practice is that some vendors complain and its delayed availability
To their bank deposits. I think this can be overcome Mailing that
I will check one day ago.
Now, many small businesses ignore to adjust their monthly banks
There are no tables or their banks. Do you make a bank
Miss, you have to stay above your spending to control you
Cash flow If you are simply one of those people who can not stand in
Confirm the balance, so you can use the standard bank reconcilement of the Bank.
Services for low monthly prices-$ 30 to $ 70 base rates and 5 to 7
Cent check. When is it best to use a bank's adjustment service?
Here are six suggestions:
(1) If you have a monthly check amount of at least 500 checks.
(2) When you need a specialized report.
(3) When you are currently performing your own adjustments.
(4) You can find the software at a reasonable price that meets your needs.
Companies that provide accounting software include DacEasy, Inc.
(800-877-8088); Real world Corp (800-678-6336) and Peachtree
(800-247-3224).
(5) When you do not have your own PC or other kind of computer system.
(We already warned about that).
(6) When you have no staff to do it, or time to do it yourself.
There is no extra money in your bank account
Many businesses make mistakes in keeping a lot of money at the bank
Account to pay for banking services. This money can be used more
Effectively elsewhere-to pay off such a loan or invest in more
Competition rate. Many companies are thinking how much money to leave
Banks or whatever choices they need to compensate the bank. Take some
Time to find what you need to have a minimum balance.
Get account analysis statement
How much money do you know (bankers call this "balance")
Do you want to leave your checking account to pay for your bank's services? that is...
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