In This Episode – Brian speaks with Val Steed, is Director of Accountants at Zoho Corporation. They have a lively conversation about cash flow, mistakes they’ve seen along the way, and what smart business owners do to avoid cash flow traps.
Cash Flow Advice from Val:
- Cash flow is the lifeblood of a business. If you start mismanaging cash flow, everything else will fall apart in your business.
- A small credit line can help with cash flow fluctuation during the year, but don’t allow a credit line to distract you from paying attention to cash flow.
- Zoho Books has a strong cash flow forecaster based on historical data. Zoho Analytics will take a lot of your historical data and analyze it for you.
- An old business client used to pay his bills the day he got them rather than wait 30-60 days, and he never really struggled with cash flow. He knew that, by paying his bills early, it forced him to be committed to properly managing his receivables and cash flow. He also knew other companies that got into trouble by letting their bills run past due and not having the cash to cover them.
- Business owners should hire someone to make collection calls for them and not get involved in the process.
- When you’ve done something good for your clients, ask them to tell their friends. Word-of-mouth referrals will keep your pipeline full.