A. Knowing your customer
Everything is connected to your customer- do they need the product? And, if they need it, can they afford it? If most B2C companies handle the payment immediately, B2B companies receive the payment after the goods have been delivered. Depending on the amount of product or service being delivered, research your customer on different platforms to see, if they are reliable and if the payment is likely to follow through.
B. Invoice settlement
Establish favorable payment terms for your customer: issue the invoice immediately after delivering the service and make it easy for them to pay (If you would like to learn some tips and tricks about invoices, read this useful article). This is where having an organized cash flow management is mandatory. The easiest way to achieve that is by investing in an accounting system. The software makes it as fast and simple as possible. Other than that, you can try offering a discount, if the payment gets settled early or collect a deposit as assurance- this gives you enough cash flow to keep going.
C. Cash flow forecast
After collecting payments from your clients, it is essential to measure the performance of the business. This can also be reflected in an appropriate accounting software. For example, Sage Business Cloud accounting system is an affordable solution for start ups as it only requires a small monthly payment and gives you instant access from anywhere, making it easy for you to see an approximate forecast.
Small and medium sized businesses are the foundation in the Maltese economy. When starting a small business, the main focus is on building your business and fulfilling the demand for your product, while the accounting becomes the second priority. An accounting system is an another employee, which will always prioritize the accounting. The business can focus on the product development while the accounting system simplifies the numbers.
Thank you for the photo, pixabay.com