5 Ways Business Intelligence Can Help You Improve Cash Flow
For a small business, improving cash flow can be a major hassle. Let’s face it; your capital will never be enough to take care of your business expenses indefinitely. Business expense tracking can help you manage finances better and even plan business goals accordingly.
One way you can do this is by leveraging business intelligence and investing in automated payment processing software. This will not only help you make smarter business decisions but you will also get paid in a timely manner. The result? Smooth cash flow and peace of mind. Here is how you can take advantage of business intelligence to boost your finances.
When you are in the grind to make the best of sales and keep your business going, keeping track of your pending payments with good expense tracking software becomes all the more important. But, if you don’t believe in following up or think that it might upset the customers, your business is set up for financial difficulties.
An intelligent online payment software will help you get a list of your debtors and identify the ones that need to be contacted first. The best part is that you can take out all the details of the payment and how long it has been outstanding. This could help you save up to 20 days in a year, and you would no longer need to chase late payments.
With insights on your debtors, the true power of business intelligence lies in providing you with the information in an easy-to-understand format. With bar graphs, an intuitive dashboard, and automated payment reminders, your online payment software is much more than a payment solution. You can use all the information to follow up with customers and ask them to pay up.
Getting paid on time is a priority for all businesses, big and small. So, it is necessary that you pay your creditors on time too. This can easily be managed via good expense tracking software.
Business intelligence tools let you map out the whole repayment plan and ensure that you never miss out on any payments. This is especially important as you will need to assess your monthly payments and understand if you have enough to cover your needs or not.
Also, having this knowledge at your fingertips will ease your financial woes, and you will better address other business issues.
Now that you know who you are supposed to pay and who owes you cash, it is time that you put a “time stamp” on the whole conversation. Businesses often face issues when they don’t have visibility into this information. Thus, they might end up paying the wrong creditors at the wrong time. For instance, if you think a payment is due at month-end, you gather cash and pay it out.
But, it is possible that the payment would have been due at a later date, and you would have used the spent money on other pressing issues. Luckily, an intelligent online payment software provides you with insights and can even help you reassess your credit terms.
Sometimes, cash flow will be tight despite your best efforts, and you may lag in paying your creditors back. However, you can contact your creditors and even ask them to renegotiate the credit terms with good expense tracking software.
Unlike popular opinion, most creditors will give you an extension if you make timely payments and maintain clear communication. This is because they can tolerate delayed payments but no payments- surely not! Moreover, it ensures that your relationship with them stays healthy. We suggest that you renegotiate these terms over a long period to protect your cash flow if your business is wading through tough times.
This is how business intelligence combined with the right tools like expense tracking software can give you a clear image of your finances. This will also give your business a greater chance of success as you will have the information at your fingertips. So pave for smarter decisions and invest in good online payment software!