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All organizations have to be strategic with their cash flow, but revenue management is especially essential for small to midsize businesses. Most smaller companies have fewer resources available, which can make it challenging to see how much money is coming in and how you’re spending it. Fortunately, by looking out for the following mistakes, you can manage your revenue stream effectively.

Cash Flow Management Blunders to Avoid

1. Not Monitoring Revenue Continuously

If a steady stream of money appears to be rolling in, you might think you don’t have to pay close attention to the numbers. However, revenue is a crucial performance indicator all businesses should monitor routinely. It can tell you whether your sales are accelerating, or if you might need to adjust your strategy to generate more business. Often, this task falls to the wayside because teams don’t have a direct line of sight into cash flow due to inefficient programs or data management.

2. Slipping Up on Accounts Receivable

cash flowSome companies send out invoices electronically, while others still use snail mail. You may even use a combination of both. However, no matter how you’re sending out bills, it’s critical to assign due dates and keep track of incoming payments. Staying on top of accounts receivable will give you visibility into any outstanding invoices. Thus, you can follow up to ensure customers don’t get away with failing to pay.

3. Managing Cash Flow From an Account Balance

Some business owners or managers may think they're actively monitoring revenue. Yet, they're only doing so by looking at an account balance that tells how much money their business has right now. This won't tell you how much money is rolling in regularly, nor will it break down how much you're spending on materials, compensation, and other vital resources. Thus, you need a way to differentiate between what's coming in and what's going out, and when.

 

Tracking cash flow can be challenging for small to midsize businesses, but with the right tools, it doesn’t have to be. The team at Expex in Latham, NY, has created Carly—an application that integrates with QuickBooks® online and manages bookkeeping responsibilities as a human would. In doing so, Carly frees up your time and efforts, so you can focus on more strategic business initiatives. Find out more about this powerful, automated bookkeeping solution online, or call (518) 389-2305 with any questions you have.

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