Have you ever wondered what you can do to keep your business running and avoid insolvency? The answer lies in good cash flow management, with which you can control your company's income and expenses. Let's learn more about this tool and how SMEs and large companies can benefit from its effective management.

What is cash flow? 

Cash flow is a report that allows you to track money coming in and going out of your business, which helps you control expenses such as bills, salaries, and other investments. 

When your business grows, you need a system to scale it. So, it is when Opsyte helps you automate and integrate cashup online.

When handled properly, it gives you a complete picture of all costs versus income to ensure you have enough funds to pay your bills while making a profit.

6 tips to keep your cash flow healthy

1.     Create monthly projections 

Use the previous financial data to create realistic projections of your cash flow, that is, calculations about your company's future development. Also, take some not-so-encouraging situations or scenarios that could arise if your sales are low in the next period. This way, you can determine a plan that allows you to pay debts and continue functioning normally.

2.     Track accounts receivable and manages invoices

Uncollected accounts are a loss until they are settled, and therefore they are a factor that greatly unbalances your cash flow. Ideally, you should create a collection plan to provide shorter payment terms or give your clients incentives to prioritize settling their debt. However, you could also opt for the use of "factoring," which is about selling the invoice to a company dedicated to this activity, which will give you the payment quickly for a service fee. The same company will be in charge of charging your client.

On the other hand, do not forget that your invoices must be managed correctly, so a management system can be very helpful not to delay sending them and monitor your accounts receivable.

3. Consolidate invariable expenses and cut unnecessary expenses

Frequent and constant payments can be well identified to speed up the calculation of monthly expenses. Expenses, such as salaries, payment of services, rents, and subscriptions, can be grouped. It will help you know if your company is at risk; since there is not enough money to pay this figure, it will be time to take drastic measures. If you notice that the projections are not very optimistic, you can cut unnecessary expenses, such as services of little use and tools and software that are not used.

4. Plan your inventory

As mentioned in other articles, inventory planning and control provides great benefits. Plan your inventory correctly to avoid stocking more items than you can sell. In addition, it will allow you to maintain your liquidity, purchasing power, and free space to continue storing. Otherwise, huge losses and your cash flow will be greatly affected.

5. Pay on deadlines

A common practice is to pay the invoices on the maximum date allowed to keep the money within the company for a longer time. It can help you up to a point. However, if you do, identify the due days of your payments well so as not to generate surcharges and even a bad relationship with your suppliers.



Although your suppliers have incentives for advance payments, we recommend you pay before. It is because these benefits often refer to discounts or reductions in the final value of the invoice. In that case, take advantage of these kinds of opportunities.

If you are a solopreneur or limited company, you should discuss cash flow management with your accountants. Our Hospitality HR Management Software, helps you manage your staff to manger their data, make easy onboarding, and simplify your night cashing up process.