Sending invoices or billing customers on time may not seem like a way to build good will; however, it is part of an overall cash flow strategy.
Here’snwhy it’s important to bill customers in timely intervals:
• Billing promptly reduces confusion – it states the project is done, service provided
• It can open the door for clients to ask questions if needed
• It reflects a level of compentence for your operation
• Billing pumps new life into your operation
• An invoice can serve to brand your company
• It shows you offer value
Cash flow also lets a company pay employees and vendors on time which boosts morale and keeps the whole sales cycle moving forward.
Here are four questions to ask about cash flow management in this excerpt from Cash Flow Tips Today:
• How much cash does my business have?
• How much cash does my business need to operate, and when is it needed?
• Where does my business receive its cash, and spend its cash?
• How do my income and expenses affect the amount of cash I need to expand my business?
The ability to answer these questions related to business finance demonstrates the ability to understand cash flow management, an ingredient to business success.