How to improve your company's cash flow: Strategies and solutions

What is cash flow and why is it important?

El cash flow is the net money that comes in and out of a company over a given period.

It's a key metric for evaluating the liquidity of your business and ensuring its financial sustainability.

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Why is it important?

1. Financial Control: It allows you to anticipate liquidity problems.
2. Informed decision-making: It helps identify areas where you can optimize resources or reduce expenses.
3. Long-term stability: It ensures that you can meet your financial obligations, even during periods of lower activity.

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Negative cash flow: What it means and how to fix it

Un negative cash flow occurs when expenses exceed revenues for a given period.

This doesn't always indicate a serious problem, but it is It is crucial to manage it to prevent it from becoming an obstacle for your business.

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Example of negative cash flow

Imagine that your company had total expenses of €10,000 in a month, but only generated revenues of €7,000. This leaves a deficit of €3,000, meaning that you need to cover that amount with reserves or external funding.

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What to do to reverse it?

1. Review expenses: Identify costs that are unnecessary or that you can reduce.
2. Increase revenue: Explore new revenue streams or slightly raise the prices of your services.
3. Optimize payments: Negotiate longer terms with suppliers and charge your customers more quickly.

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Keys to improving your company's cash flow

1. Keep a detailed track of your finances

• Review your income and expenses on a weekly basis.
• Forecast your payments and collections to anticipate potential liquidity problems.

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2. Reduce your expenses

• Negotiate with suppliers to get discounts for large purchases or early payments.
• Review contracts for services such as internet or software to avoid unnecessary expenses.
• Consider selling assets that you don't use, such as obsolete equipment or excess inventory.

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3. Increase your income

• It offers complementary services that attract more customers.
• Implement maintenance plans to build customer loyalty and ensure regular revenues.
• Use advertising to increase your reach and visibility.

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4. Optimize your prices

• Inform your customers about any price changes in advance.
• Justify the price increase by showing improvements in your products or services.

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Tips for modernizing your billing and increasing liquidity

1. Digitize your invoices: Use tools such as Taclia per automate the creation and sending of invoices.
2. Get paid quickly: Send invoices right after completing a service.
3. Be clear with the payment terms: Set specific payment deadlines and communicate them clearly to your customers.
4. Late fees apply: Penalize late payments to encourage punctuality in your customers.
5. Send reminders: Use automatic reminders for avoid unpaid bills.

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taclia: The solution to manage your cash flow easily

With Taclia, you can improve your cash flow management and simplify your financial operations.

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Key benefits

1. Control of income and expenses: Record every financial movement to keep your liquidity under control.
2. Billing automation: Quickly generate invoices and quotes from any device.
3. Efficient customer management: Monitor relationships with your customers and easily access their invoices and payment histories.

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Try taclia for free.