7 Surefire Ways to Improve Business Cash Flow Through CredFlow

Business Cash Flow

The primary purpose of running any business is profitability. To achieve this objective, a business needs to have positive cash flow. In other words, the total capital income should exceed the total company expenditure. Cash inflow is defined as the increase in liquid assets of a company, likewise, a cash outflow is when the liquid assets of a company decrease. The mathematical expression for this whole process is roughly defined as: Cash Flow = Net Income + Depreciation/Amortisation – Change in Working Capital – Capital Expenditure.

Frequent roadblocks in profitability and their timely resolution is the very definition of business. Sometimes the company assets are severely affected or reduced, especially when the net income decreases or the working capital jumps considerably. What to do in such a case? 

In such conundrums, a vertical-specific cashflow management solution: CredFLow can be used. Read on to learn about how you can improve business with this amazing app.

Manage Inventory Properly

For a company that’s selling a considerable volume of products, stock needs to be maintained at all times. When more inventory is held than necessary, needless wastages lead to high costs. Similarly, when a lower level of stock is present than necessary, the firm cannot meet customer demands, and there is a loss of revenue. 

CredFlow integrates with TallyPrime to help you view data including current stock level of different products, the total sales amount, and the sales price. It helps firms decide the number of stock items that should be considered at the stock reorder level and if ordering more stock is necessary.

Offer Discounts as Incentives to Ensure Timely Debt Payments

When running a company, it is essential to plan out on-time payments by debtors to meet payment obligations like salaries, office rental fees, travelling expenses, telephone expenses, etc. One way to encourage debtors to pay early is by offering them incentives for prompt payment. For example, a 5% incentive (discount) to a debtor for paying dues within one week instead of the due date of paying the dues within two weeks can help receive payments promptly. 

CredFlow is one way to track whether debtors have made due payments for products/services. You can create incentive schemes within this mobile application integrated with Tally. It will increase the probability a debtor will pay you quickly and improve cash flow from operating activities.

Pay Vendors On Time

It is a company’s foremost responsibility to pay its vendors on time. In particular, an ice cream company may depend upon a milk supplier to manufacture ice cream. Not paying the milk supplier on time may put the business in harm’s way. Paying vendors on time promises no late fines for paying after the due date. It keeps the firm’s expenses to a minimum. It improves the firm’s cash flow.

With CredFlow’s bill financing feature, you can view pending bills and raise a request for bill payment.

Send Timely Invoices To Debtors

Sending debtors invoices on time and follow-up messages to the invoices in case the payment gets late is imperative. Companies need to send invoices before the due date to ascertain the debtors have sufficient time to respond to payment requests. It will set a seal on faster bill payments, improving cash flow in the process.

CredFlow is a mobile application that can help you create and send timely invoices and payment reminders to debtors.

Better Plan Future Cash Needs

In the scenario where a business is planning a major future event like buying a new office space for the company, hiring more employees, or investing money into manufacturing a new product, it needs to plan cash flow well in advance. It helps the company take necessary actions, like taking a loan, to meet such circumstances. No one likes cash flow surprises. Making financial planning a business ritual to ensure smooth business operations is in sync with a company’s long-term goals.

One mobile application that predicts receivables and payables in a firm is CredFlow. Intelligent algorithms, with the help of artificial intelligence, help companies predict finances.

Ensure Timely Client Communication

Besides sending timely reminders to clients, keeping in touch with them regularly is critical. Suppose that a debtor is not paying a business on time, then you may contact them to understand when they can pay their dues. Such communication helps firms predict when finances will flow into their business.

You can send bulk messages to your debtors with CredFlow. Whether you wish to discuss reasons for a payment delay or payment terms and conditions, it can help.

Analyse Debtor Information Regularly

CredFlow can help you analyse debtor information easily. The mobile application quickly checks whether a debtor has paid dues or not, and classifies them as bad debts. The mobile application helps reduce outstanding debtor payment time by almost 20%.

Analytics reports can help you understand metrics like the total sales collection, day sales outstanding, and the total collection due.

We hope that the above cash flow tips will prove beneficial to you for your business. Consider CredFlow. It will help you improve company asset management and clinch on timely payments. If you wish to learn more about CredFlow and its features, click here.

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