Strategies for Small Businesses to Streamline their Cash Flow

Top Strategies for Small Businesses to Streamline their Cash Flow

Sure, there are a myriad of different financial tools and metrics you can use to monitor and evaluate your business and keep it on track. One of the most important is your operating cash flow. A lot of businesses use their cash flow data as a primary means of analyzing how well or poorly the company is performing. Moreover, managing your cash flow can also help you discover different trends and patterns in the overall results, which allows entrepreneurs to address crucial business shortcomings or capitalize on its strengths. 

Let’s look at some sure-fire strategies small businesses can use to improve their cash flow. 

Segment Your Business Statements into Three Sections 

One of the most optimal ways to evaluate your cash flow performance and how it affects your overall liquidity and operations is by categorizing your cash flow into three sections. These are: 

  • Investments 
  • Operations
  • Financing  

After that, it’s going to be simpler for you to calculate the total cash flow to derive a sales ratio. According to Jared Weitz from United Capital Source Inc., this is going to help you identify the real value of each dollar in your total revenueWhen you analyze all three categories, you’ll get a comprehensive understanding of where exactly you’re gaining money and where you are losing it. This is also going to be a great metric when it comes to adequately budgeting for different areas and increasing cash flow.   

Make the Cash Flow Process Easier  

As per small business coach and author Melinda Emerson, there is no question that most small businesses tend to be “mom and pop” establishments, where the owners are not particularly well versed in finances or do not have much experience on the subject. This is why it is important to make things more streamlined and easier . 

Such businesses understand a more basic approach to cash flow calculation, which is mainly measured in number of days. This form of cash flow calculation is child’s play because everybody is familiar with calendars, and that makes it simpler for businesses to break down their investments into days. 

Go for a Periodic Payment Plan 

As a business, there is nothing better than to have liquidity to inject into your working capital to keep things running. So, if you are offered an installment plan, take it. 

What this essentially does is help keep a certain amount of cash flow within the business to make payments every month. Then you can pay your business’ utilities and bills while still having room to make your monthly payments.  

Don’t Forget to Monitor Your Cash Flow  

Another way you can know how to improve cash flow is constantly and consistently being in the loop of how much money is coming in and going out. Sadly, many small businesses neglect this. 

This strategy is simple. Keep an eye on everything that is coming into the business and everything that is going out. You can do this on a daily basis, which is going to be a bit daunting – so the best option is calculating everything on a weekly basis.  

Prioritize Your Cash Collections and Inflow 

According to presentations skills specialist Bruna Martinuzzithe best way to gauge the performance of your business is to closely monitor your accounts receivables as well as keeping a bird’s eye view on the outstanding sales. Small businesses should offer discounts for early payments in order to speed up their collections. 

You have to understand that your customers are also looking for a win-win situation, and there is nothing better than to offer them a cash discount if they pay you as soon as possible. Plus, you are going to always know when to expect an inflow from your customers, boosting your cash flow.  

Bottom Line 

Although many businesses consider cash flow as a secondary issue by focusing more on marketing and sales, as a small business looking to gain a competitive advantage, you have to be able to stay afloat. 

Without a streamlined cash flow system, you are going to have a working capital deficit. And that means you will not be able to pay for more immediate and crucial components of the business. 

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This article is taken from our parent company Aepiphanni Business Consulting’s blog section. Check out for more information here. 

WistBooks Financial Management. Wise + Strategies to take your business financials further.(TM) 

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

We are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.

We would love to hear from you.  Please share your thoughts and comments below

THE IMPACT OF SMALL AND MEDIUM-SIZED BUSINESSES

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An Economic Force - The Impact of Small and Medium - Sized Businesses

In 2019, the U.S. Small Business Administration recorded a total of 30.7 million small businesses in the United States. This translates to small businesses making up 99.9% of American businesses. On the other hand, medium-sized businesses are making their own economic impact. The Government of Canada found that 21,926 of all Canadian companies (or 1.9% of Canadian firms) were medium-sized businesses.

While many may have their attention on Fortune 500 companies, these statistics prove that SMEs (Small to Mid-size Enterprises) help drive the economy of any nation forward. But what are the exact contributions of small and medium-sized enterprises? In this article, we list three specific impacts and how SMEs became an economic force to be reckoned with.

A job creation engine

The rise of SMEs provided employment to 59.9 million people. The Current Population Survey reported that the United States saw an improvement in employment rate in late 2018, and it continued to rise in 2019  as shown by the 4.1% unemployment rate in February 2018 dropping down to 3.8% by February 2019.

Another statistic proved that the size of the company does not always equate to how successful the business is. For example, firms who have fewer than 20 employees experienced the largest gains, providing 1.2 million net jobs.

As an average of 543,000 businesses are started each month, one can expect that the continued rise of new SME ventures will open doors for both unemployed and underemployed people to contribute their skills.

Cultivating international trade

Santander UK, a British bank, raises the potential of small and medium-size business when it comes to exporting, stating that these firms are the new face of international trade. SCORE, a non-profit association serving small businesses, found that 97% of the United States’ exporters are SMEs. This is mainly because exporting opens opportunities for these new firms. The fact that 26% of companies which trade internationally often outperform their competitors proves this, especially because extending their products beyond their borders also means that they are tapping a larger market.

These companies can also substantially change the way society does business digitally. In a Deloitte report, businesses which take advantage of the opportunities presented by technology are five times more likely to reach new international customers.

Drivers of economic growth

JP Morgan Chase & Co. states that small businesses are an anchor of the US economy. In 2010, these budding enterprises accounted for 45% of the country’s GDP growth.

In fact, in a survey conducted by Salesforce, 86% of the respondents said that they are willing to pay more when it comes to investing in small businesses. This gives some insight into how consumers interact with SMEs as 47% of those consumers answered that they are willing to go out of their way to shop in locally-owned businesses.

Other than its role in providing employment to millions of individuals, the reason why SMEs move economies forward is mainly due to their innovativeness. Small and mid-size enterprises have a higher and more active patent activity than their larger counterparts. This is a testament to their fresh and creative ideas, which can ultimately lead to a new type of demand, brought forth to society.

Small and medium-sized businesses have made their mark on the economy. The rise of digital opportunities will only push them further forward. SMEs proved this when 85% of surveyed businesses in a Deloitte report stated that digital tools have helped their company in some way.

As the small and medium-size sector starts to become even more competitive, businesses will find ways to get ahead. One thing is for sure – these budding enterprises will continuously be a major player in any country’s economy, and they are here to stay.

 Business Catalyst Masterclass

To give back to the small business community, we have developed the Business Catalyst Program to help you retrench, move your company forward, and bridge the gap from where you are today to where you want to go.

We still have a few spots left for the catalyst program. Register through this link, then once we review your application, we’ll let you know if your business qualifies for it.

WistBooks Financial Management. Wise + Strategies to take your business financials further.(TM) 

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

We are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.

Covid-19 Survival Tips & Lessons

Covid 19- Survival Tips & Lessons from the Small Business Community 

If you do a search on the topic “small businesses and the coronavirus pandemic,” you’ll find there are hundreds of thousands of articles, images and videos sharing stories, providing encouragement, offering lessons learned, and supplying turnaround strategies for the small business community. Each one provides a different perspective and different nuggets of valuable advice.  

We, at Aepiphanni Business Consulting Group, not only own a small business – our entire client base are small business owners that we help become extraordinary leaders and companies.  With that in mind, we would like to share our unique insight of experiencing the coronavirus pandemic on two fronts: inside our own business and how we supported our clients through their Covid-19 pandemic challenges.   

As you read through this article, you’ll find a variety of first-hand experiences in the form of quotes from both the Wistbooks and Aepiphanni team and vendors who partner with us to serve our clients, as well as video clips from our clients sharing coronavirus lessons they learned.  May this article prove to be helpful to your small business as we all shift to whatever the “new normal” becomes over time.  

Read the rest of the article on Medium here

WistBooks Financial Management. Wise + Strategies to take your business financials further.(TM) 

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

We are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.

Leading Team into Digital Revolution

How To Lead Your Team into a Digital Revolution


Industries have to change to keep pace with technological advances.  In the late 1700s human and livestock power began to be replaced with mechanical production, water and steam power. In the late 1800 another shift occurred moving towards electric powered assembly lines and similar forms of mass production. By the late 1960s automation continued to advance with computers and electronics. Now, in 2020, the latest industrial revolution is focused on cyber and physical networks using smart technologies to create truly autonomous systems.

Change is difficult for anyone because humans are hard-wired to stay within their comfort zones once they develop a sense of confidence in their abilities within that arena.  Yet, regardless of the effort it may take to change with the times, leaders cannot afford to delay in adapting to industry advances otherwise their company will become irrelevant in the eyes of their consumers. 

Leaders today must develop a new type of company culture where “change management” becomes a significant core value.  This new decade brings new requirements for business leaders in how to manage the flexibility of change while reducing any fatigue caused by the learning curve as processes and expectations shift frequently.  That is why it’s essential for leadership to maintain continuous improvement opportunities within their industry and business culture before the tipping point requires it.

Harvard Business Review discusses how Digital Transformation Comes Down to Talent in 4 Key Areas:  technology, data, process, and organizational change capability.  All four areas are essential, and sometimes it requires finding someone on your team gifted in blending business and technology skills who also excels in business intelligence and analytics to lead the change.  These people are nicknamed “Purple People” based on this metaphor:  If IT people speak a blue language and business people speak a red language, transformation will only happen through the efforts of people who speak purple (a blend of red and blue) so they can translate what needs to be done to bring the red and blue people together.

Knowing how to implement change is only part of the process.  You also need to understand why changes fail.  Don’t make the mistake of assuming your team will automatically support your “good idea” or the downplay the consequences of unknown obstacles that will appear as you transition through your change process.  You must gain their buy-in first and set realistic expectations for every stage of it.

The digital revolution will continue to evolve no matter what, especially in the wake of the Covid 19 crisis which showcased the importance of up-to-the-minute online information and data.  Moving your company to an online platform in order to provide your employees and customers with access to whatever information they need has become a critical aspect of doing business.  If your company is lagging behind the times and needs help – especially in the area of your financial operations – we would love to help.

 

WistBooks Financial Management. Wise + Strategies to take your business financials further.(TM) 

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

We are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.


Kris Cavanaugh Castro is the People Development Coach at Aepiphanni, the trusted advisor for business leaders who are seeking forward-thinking solutions to help them plan for and navigate through the challenges of business growth.  Kris has over 25 years of coaching, training and mentoring leaders to greater success; and she periodically writes about leadership development and facilitates change management conversations.

We would love to hear from you.  Please share your thoughts and comments below.