Delegate, Focus, and GROW Your Business

Managing Your Cash Flow

One of the areas of opportunity for many small to medium businesses is managing their cash flow through accounts receivable. Staying on top of invoicing and past due accounts can increase cash flow and reduce revenue losses, however this can often be easier said then done. One way your Virtual Assistant can be utilized is to create greater efficiency in your invoicing and follow up on past due accounts to ensure that your cash flow remains fluid.

Importance Of Timely Invoicing

For any company that invoices customers for products or services, preparing and sending out these invoices on a regular schedule is vital to increasing cash flow. While it may be more convenient to send out all invoices at the same time of the month, it is not necessarily the best way to ensure continuous payments throughout the month from clients. Instead consider moving to a weekly invoicing system that will get invoices out to consumer faster and in return, get payments coming in quicker.

Another way to speed up payments is to use online invoicing. Save time and money over paper and snail mail by converting as many customers as you can to online invoicing. There are many options available for bookkeeping or accounting software that can be used to digitally create invoices as well as keep your financial records up-to-date and safely stored online. Your Virtual Assistant can help you reach out to your customer to retrieve email addresses and begin paperless billing.

Staying On Top Of Past Due Accounts

Although CVA is certainly not a collection agency, our team can help you in managing your accounts receivable and keeping in touch with your past due accounts. You and your VA can create a system for contacting past due clients through standard correspondence to reduce the amount of accounts that are written off each year. The longer an account goes unpaid, the bigger risk there is for non-payment.

By putting a system in place to send out invoices faster and to stay on top of unpaid invoices, your company can see an increase in cash flow each month. Your VA can manage this area of your business and keep you informed of any accounts that may need your personal attention while giving you more time to spend on other areas of your business. It is a great way to use your VA in a way that can earn you substantial financial rewards every month in more cash flow and reduced losses from your invoiced accounts.

photo credit: Sean McMenemy

Posted on December 12th, 2013 by Rachel Braam, Office Manager

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