There is something you can never forget when you run
Business Outside Your Home – Money is King!
Be it a multi-billion dollar empire like Bill Gates’s Microsoft,
Or the little mom-and-pop convenience store on the street corner, Money
The lifeblood of the business.
In a volatile economy with ever-increasing interest rates, there is very little
Businesses with limited financial training have problems staying
Stay alive, thrive In fact, 63% of new businesses survive
Six years – and most people who work at home fail in 6 months!
The root cause is bad money management. For most self-employed people
Ignore their cash flow until it’s too late to recover. Suddenly, before!
It’s back to your office job! We don’t want that to happen.
So the big question is: can you manage your cash flow?
better? If you’re not sure, you’re in trouble.
Money, Money, Money: Les Mason, author of the three principles of business
Existence and Success, Cash Flow is “Getting Money
Customers pay fast, last minute bills, pay attention
Cash to a single bank account, Accounts payable, Accounts
Receivables and inventory are more profitable and squeeze every penny
Your daily business
Let’s break down Mason’s hints at once.
In your business, you need to collect money as fast as you can. To do so
Try these four things:
(1) Fax customer orders to you and try to speed them up.
(2) Send your invoices on the same day the goods are shipped, not for a week or so
(3) In your invoice, pay the penalty when due
Interest on late payment.
(4) Consider using a bank lock box (strategically located post office box)
To get your mail checks) near customers to reduce mailing time)
Customers across the country. You get mail around the lockbox bank
The watch, including weekends, processes checks and credits to your account.
(Note: This last step is best suited for gross income of businesses
More than $ 25 million annually. If you are not there yet, keep it
Remember when you go there)!
This may seem obvious, but it is extremely important. Of course, here it is
Six Mason-certified proposals for fastest utilization
On deposited checks.
(1) Always deposit on the day the check is received. Do not hold back
Because you don’t have a float on one day, checks on until the next day. Key point: You
Three days of floating time can be lost by not depositing checks on Friday
(2) Deposit checks are available from 0 to 2 days. Don’t allow
Your bank can give you 1 to 5 days to the customer. Be it
Persist. Look for the bank’s “Availability Schedule” and scan it
You are guaranteed to get two days or less fast.
Each bank has its own utility schedule. This is used for transferring checks
Availability of customers, business (commercial accounts) and large
Corporate accounts. Utility is the number of days you can use it
As cash deposited by checks. For example, a $ 1,000 check
Deposit today and make it available one day
(3) Do not deposit checks in an ATM at a bank
Because there is no evidence that you actually deposited the night deposit
Checks you said. Remember, you only receive a receipt
You do not have the time and the dollar amount to deposit in the ATM
Receipt of the night depositor
(4) MICR encodes your customer’s checks (using a printing machine)
Magnetic ink at the bottom of the check) before the dollar amount
If you deposit more than 500 checks per month, deposit them in the bank.
For every encrypted check, banks charge less than 3 to 5 cents. Coding used
The machines cost about $ 1,500. (Check your yellow pages under banking equipment
For distributors). In addition to saving money, you can have another benefit: Faster
Check the utility.
(5) You should ask the bank about the closing date of the deposit
Checks. Some banks may offer a token check at 8 p.m. 2 may need to be placed.
The bank is open at 5pm. Make sure you set this period,
Otherwise you lose the float one day.
(6) Find bank information before using an ATM for check deposits
Deadline available. Some banks have a cut-off time of 12 noon
Any check deposited later is considered to be deposited next
Date! In that case, even if you do, you lose a float all day
Your part to get the check money.
There are super tight accounts
Many people think that accounts receivable is not a big deal
Bill can be added. This is a bad cash flow policy. Here are seven
Great tips for handling accounts receivable:
(1) Check the financial health of a new client before offering