Whether your business is growing or struggling, managing your cash flow effectively is absolutely essential, and for many, it's the key to business survival. Staying on top of your cash in and cash out is paramount to running a small business smoothly. Here in this PPT, we have given some practical tips which will help you to manage your cashflow efficiently.

1. 8 PRACTICAL TIPS TO
MANAGE CASH FLOW
IN A SMALL
BUSINESS!
Presented by Cogneesol Inc.

2. Managing cash holds immense significance in
the proficient working of a firm since
inadequate cash flow management leads to
business failure in the future.
Small businesses must have the required level of
cash to conduct regular operating activities.

3. AS PER THE U.S. BANK
STUDY,
82%OF THE TIME, THE REASON FOR
SMALL BUSINESSES’ FAILURE IS
NOTHING BUT POOR CASH FLOW
MANAGEMENT.

4. TOP 8 CASH FLOW
MANAGEMENT TIPS

5. 1.
REQUEST ADVANCE CASH/CASH ON
DELIVERY
With this, you will receive money upfront and also
be able to grant early payment discounts, boosting
customer retention.

6. 2.
CREATE THE SHORTEST PERIOD FOR
CREDIT
The nature of the services/goods, such as fast-
moving consumer goods (FMCGs), will decide on
the period of credit (normally 30 days) required
by your customers to pay.

7. 3.
MATCH VENDOR PAYMENT TERMS WITH
YOUR CREDIT TERMS
Similarly, you should pay supplier invoices within
30 (or max 45-60) days of the invoice generation
date.

8. 4.
EVALUATE PROFIT MARGINS
Make sure that the profit margin is not eroded with
an increase in cost. If that happens, consider
increasing the product price and if it is not
possible, try reducing associated costs.

9. 5.
MANAGE INVENTORY LEVELS
You should not overstock and make purchases as
required in order to avoid overusing cash in stock.

10. 6.
MINIMIZE DISCRETIONARY EXPENSES
After Covid-19, the working ways of small
businesses will change. So, cut down on expenses
related to activities that will no longer be used in
the future.

11. 7.
MANAGE LOANS EFFICIENTLY
Loans’ refinancing with the concerned financial
institutions.
Acquiring loans with low-interest rates from the
government-adopted credit union initiative.
This includes:

12. 8.
MANAGE IN REAL-TIME
Ensuring accurate and timely transactions’
recording such as supplier invoicing, customer
billings, accounts receivables’ follow up, and
depositing of receipts.
Preparing financial statements, at least an
income statement, customer accounts, and
ban reconciliation.
This Includes

13. Cash is the king for every business, and
every business must ensure accurate cash
flow management. As a business owner,
you need to wear many hats, and managing
cash flow is a hectic task. So, it is advised to
hire professionals to manage your cash flow.

14. Join hands with Cogneesol, a top
Our accounting experts will ensure your
cash flow care in an accurate,
timely, and affordable manner.
accounting outsourcing firm
than 12 years of experience in providing
top-notch accounting back-office services.
with more

15. Get in Touch
ADDRESS
EMAIL ADDRESS
PHONE NUMBER
30 Wall Street,8th Floor, New York
info@cogneesol.com
+1 646-688-2821
www.cogneesol.com