Happy Wednesday, Reader!
Ever wondered where all your money goes?
Let’s dive into the secrets of mastering cash flow – and yes, it’s more exciting than it sounds!
Today's News:
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Forget the great resignation, we're now in our big stay era.
As the adage goes, the grass isn't always greener.
This rings true for American workers who have started shunning the idea of the Great Resignation, AKA leaving their jobs in droves.
That's according to recent research conducted by WTW which found that 72% of employees plan on staying in their current roles, compared to 2022 figures which revealed that 53% of employees planned on leaving their jobs.
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Practical Tips for Managing Cash Flow
Forecasting Cashflow
Why it Matters: Forecasting helps you anticipate cash shortages and surpluses, allowing you to make informed decisions.
How To Do It: Create a cash flow forecast by listing all expected inflows (sales, loan proceeds) and outflows (rent, salaries, utilities) for the upcoming months.
Managing Receivables and Payables
Receivables:
- Tip: Encourage early payments by offering discounts or incentives. Follow up promptly on overdue invoices.
- Tool: Use invoicing software to automate reminders and keep track of payments.
Payables:
- Tip: Negotiate better terms with suppliers to extend payment periods without incurring penalties.
- Tool: Schedule payments to ensure you maintain a positive cash flow while meeting all obligations.
Planning for Seasonal Fluctuations
Why It Matters: Many service businesses experience seasonal variations in demand. Planning helps you avoid cash crunches during slow periods.
- How To Do It: Analyze your sales patterns over the past years to identify peak and off-peak periods. Save excess cash during peak times to cover expenses during slower months.
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Managing cash flow doesn’t have to be daunting. With the right strategies and tools, you can ensure your service business remains financially healthy and ready to grow. I hope you found these tips helpful and feel more confident in handling your cash flow.
Remember, I'm here to help! If you have any questions or need personalized assistance, don’t hesitate to reach out.
– Amber
