The financial part of a business is the one that keeps its functioning consistent and prolongs its life. A good financial equation means that most of the aspects of a business are falling right into place. But, there are times when you need quick money to solve certain problems that may involve spending some extra money. If you have a multi-million dollar business, then you may steer clear of this problem with the help of your financial ammunition but if you have a small business, the problem is bound to affect it, especially if it is a lawsuit. Here a few issues that small businesses face while managing their finances along with some suggestions.
Inconsistent Cash Flow
Yes, you have a big payment coming your way at the end of the month but what after that? What are you going to do for the rest of the quarter when there is no payment at all? This will create an imbalance in your finances because no employee likes delayed salaries. He/she will demand it on the first day of every month, and if you have an inconsistent cash flow, you will not be able to fulfil their demand regularly.
When a small business gets its first big payout, operators are often confused because they do not know how to spend it. Yes, you should invest most of that money on the infrastructure and technological advancement of the company but again a question arises “where in the infrastructure?” The answer to this question varies from business to business, and it is advisable that you hire a consultant firm or a firm which specifically advises in investments.
To ensure that your business does not face any financial crisis because of delayed payments and other issues, you should opt for online invoicing. This not only takes away the load of creating an invoice everyday but also lets you send invoices via mail which results in instant payments.
5 core aspects of Online Invoicing with advantages
- There is no need of a printer, ink or paper if you are opting for an online invoice system.
- You do not need to spend hours trying to create an informative invoice which smoothly provides the details of all aspects involved while demanding payments. All you have to do is provide data to the tool which handles invoicing, and it will do the rest.
- If you are using an invoicing software, then you can follow the above procedure yourself.
- Make sure that the online invoice does not have plain boring text and just numbers. There should be graphs, pie charts and proper segmentation, otherwise there is no use of creating an online invoice, you could have simply opened up an excel sheet and done the same thing.
- Since you are not posting the invoice through mail but e-mail, online invoicing ensures quick payments even if the payment is from a foreign client because of online payment facilities.
- You can easily track all your bills as you will not be creating that hectic file that has all printed versions of bills or a folder on your PC, which has all invoices. When the PC will be formatted for some reason, all invoices will be gone but, in case of online invoicing, all of them will be saved on the cloud space for you to access anytime from anywhere.
This is the perfect solution for inconsistent cash flow. You have to bill your clients on a regular basis. Either get payment in parts for every month or charge a membership fees or service charge or maintenance fee or anything else which ensures recurring payments. This way you will be able to maintain a consistent cash flow that will help you run the company smoothly.