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13 must-read money management tips for small businesses

March 27, 2019

Cash is the lifeblood of any business. If you can’t master cash flow, your business may not last long: 29% of small businesses that fail run out of cash, and 82% have some kind of cash flow problems.

Managing cash flow may sound simple—just make more money than you spend—but for many small businesses, it’s trickier than it sounds. The first step to better money management is understanding where your money is going.

Here are 13 must-read money management tips for small businesses.

Cash is king

It’s more and more possible for small businesses to go completely cashless, and there are some significant benefits, starting with the clear paper trail for cashless payments. But as long as you’re accepting cash, you’ve got to create rock-solid systems for keeping track of it.

Manage your inventory to manage your money

Unsold inventory costs you money. It’s as simple as that. A good money management plan for your small business includes a good inventory management plan.

Get paid—on time

Late payments cost small businesses $3 trillion a year, and small businesses spend an average of 15 days a year chasing late payments, according to research by Sage. Don’t let your business become a statistic—make sure your clients are paying you promptly.

Crunch your numbers

Small business money management all comes down to a few key numbers. Dig into the data to make sure that you’re making money on every single sale.

Create good accounting systems

Most small business owners start out doing their books themselves. As your business grows, that job gets bigger and bigger, and you may want to hire an accountant. But no matter who is doing your books, you need strong systems to make sure you’re managing your money well.

Get quick cash in a pinch

Even the best-managed business may occasionally hit a liquidity crisis. If you’re experiencing a slow season or another problem that’s causing a cash crunch, don’t panic—get help.

  • 13. Know where to turn if your business needs a quick cash infusion. Clover Capital, for example, can get you a cash advance in as little as 3-5 days, and you’ll repay automatically from your daily sales.

Clover is sold by leading U.S. banks including Bank of America, BBVA, Citi, PNC, SunTrust and Wells Fargo. You’ll also find Clover at our trusted partners including CardConnect, Restaurant Depot, and Sam’s Club. For more information, visit us at clover.com.