You started the business. You have a product or service that is receiving favorable feedback. You even have clients that have purchased your products. However, you have a major problem. Cash flow management.
While you have sold products or services, the process of getting paid is taking longer than expected. You have to wait to get paid by the credit card company. You have to wait to get paid by clients paying by check. You have to wait to get paid through Paypal. While you are doing all this waiting, you have bills that you need to pay immediately or face penalties.
Managing how you get paid is critical to the success of your business. Here are some of the key cash flow management questions:
- What forms of payment should you accept?
- Should you extend credit to your clients?
- How can you reduce the time to get paid and cost of collecting payments?
- How can you solve cash flow problems when they arise?
Here is a list of resources from to help you with these questions. We suggest that you start with INC guide below which provides a fairly robust overview of this topic. If you come across other resources that should be included in this list of have other comments/questions please let us know in the comments section below.
Resources for Cash flow management:
Inc: Guide to Getting Your Business Paid A collection of over 20 articles on the how to receive and collect money from your clients.
Business Owner’s Toolkit: Which Transactions Are Subject To Sales Tax Should you be collecting sales tax. While rules vary state to state – here are some general guidelines.
The Bottom Line: Sales Tax Resources For Online Sellers In Every State As a general rule, you need to collect sales tax for the state in which your business is located. However, if you sell over $1m per year online, you need to collect sales tax for every state.
SBA.gov: Credit and Debit Cards: To Accept Or Not To Accept A high level overview of the issue regarding taking credit and debit cards.
Business Owner’s Toolkit: Accepting Credit Cards Particularly good discussion of which business might have problems with chargebacks.
Business News Daily: Accepting Credit Cards: A Small Business Guide This article does a good job going into the differences between accepting credit cards in person, mobile devices and online with details about fees.
Cash To Credit: Basic Outline For Developing A Credit Policy There is nothing basic about this guide. Before extending credit to potential partners, you should read this.
Accounting Tools: How Do I Collect A Past Due Invoice This was you through the process of contacting the customer and escalating the issue if you don’t get a response.