- Do a weekly entry of all invoices. Set aside time once a week to update the financial records regardless of how many invoices came in. In this regard, it is particularly helpful to use an online system as it has provisions like auto-fill forms and useful drop-down menus that are only a click away.
- Bank statements should be reconciled monthly with the cash flow statement to make sure that both correspond with one another. It is best to separate the tax from each transaction received and to put this in a separate account earmarked for taxes only. This is so when it comes to file taxes, you would have the money ready and with possibly a little left over to reinvest into the business.
- Keep in mind that cash flow is not constant at all times. It varies and may at times come and go. Be sure to monitor this regularly so as not get caught off-guard by charges for insufficient funding when paying creditors.
- Be vigilant in monitoring receivables from clients. Though it is idyllic to have clients who pay their bills on time, this is not always the case. It is best to follow up on clients with invoices that are past due.
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