SUMMER SAVINGS
90% OFF
QuickBooks for 3 months*
Ends 8/27

5 ways to optimize business cash flow

Published on

3 min read

For small businesses, managing cash flow effectively is critical for running daily operations smoothly, receiving profits faster, keeping operations efficient, lowering total operating costs, and providing a better customer experience.

Download your Free Wholesale Cash Flow Model

Forecast sales and cash flow, budget better and monitor sales performance

Click here to download now!

Unlike profit, cash flow tells you how much actual cash is available to a business at any given time and how much you can spend – and that’s why cash is king, as they say.

Here are five ways to master cash flow optimization.

1.Negotiate payment terms

Whether you’re a wholesaler or a B2C retailer, being paid promptly is crucial to keeping your cash flow healthy. Make sure that your payment terms and days payable are clearly communicated to customers, and follow up on overdue accounts. Also, consider structuring agreements to include discounts for early payment and charging interest for late payments by customers.

2.Improve the customer experience

It’s no secret that if you make it easy for customers to pay you, the likelier they’ll be to pay you on time! Using a B2B payment gateway like TradeGecko Payments not only makes it easy for you to bill customers but also offers a fast and convenient payment method for them – so you can expect prompt payments and steady cash flow.

3.Do cash flow forecasts

Taking the time to complete a monthly cash flow forecast will give you a good indication as to how much cash you’ll have available in future. With this information, you can start to budget for upcoming expenses and consider ways you can invest back into the business. Try our free cash flow tool to estimate revenues, orders, and cash over time.4

4. Reduce inventory holding costs by managing inventory effectively

Effective inventory forecasting and management is key to keeping inventory holding costs as low as possible and freeing up cash to spend in other areas. Consider using a dedicated inventory management system so that you can accurately monitor stock levels and make purchase orders only when you need to – reducing the chance of negative cash flow and issues such as dead stock.

5. Diversify your customer base

Variety is the spice of life, and the same goes for your customer base. Work towards a multi-channel or omnichannel sales approach so that you can be selling to multiple customers across multiple platforms simultaneously. By doing this, you won’t need to rely on a single source for revenues, and you’ll start to see cash flowing into the business at a steadier pace.

When it comes to optimizing business cash flow, TradeGecko can help with all of the points above by giving you the tools to manage your inventory effectively, facilitating fast and easy customer payments, selling across multiple channels, accessing sales and inventory reports, and managing crucial business operations from a single dashboard.

Plus, with our free cash flow model, you can also accurately track revenues, orders, and cash – giving you insights into what your cash flow will look like over time and allowing you to plan ahead.

TradeGecko is an elegant and powerful platform for back-end operations

Use TradeGecko to streamline your inventory management processes and grow your business

Start my free trial now

QuickBooks has the tools you need to help your business thrive.

View plans

Explore what you can do with QuickBooks

No Thanks

Explore what you can do with QuickBooks

See profit at a glance

Get a clear view of what you make and spend over time.

See plans

Explore accounting

Pay your team

Get payroll done right, and payroll taxes done for you.

See plans

Explore payroll

Get expert help

Access personalized help and guidance right from the start.

See plans

Explore Intuit Experts

View all products

- QuickBooks and Intuit are a technology company, not a bank. Banking services provided by Green Dot Bank, Member FDIC.
  
  We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.
  
  **Product information
  
  QuickBooks Term Loan and QuickBooks Line of Credit loans are issued by WebBank.
  
  Intuit Expert Assisted: QuickBooks Online subscription required. Supported topics subject to change. Excludes bookkeeping and tax preparation services, each of which are sold separately. Additional terms and conditions apply.
  
  Intuit Expert Full Service Bookkeeping: QuickBooks Online subscription required. Cleanup is required prior to commencement of bookkeeping services and charged as a one-time fee. Monthly bookkeeping pricing is based on your business’s average monthly expenses and may be reassessed at Intuit’s sole discretion. Excludes tax preparation services, which are sold separately. Additional terms, conditions and eligibility requirements apply.
  
  Intuit Expert Business Tax, powered by TurboTax: QuickBooks Online subscription required. Not eligible to non-admin users in QuickBooks Online. Actual prices are determined at the point of print or e-file and are subject to change. For more info about Intuit Expert Business Tax, see the QuickBooks Terms of Service and TurboTax Terms of Service. For guarantee details, see: turbotax.com/guarantees.
  
  Intuit Expert Cleanup: Applies to bookkeeping records for the prior and/or current financial year. Eligibility for prior year or current year cleanup depends on the date of purchase. Does not cover bookkeeping records used for any previously filed tax return. Onboarding call required within 60 days of purchase. Timely cleanup is subject to timely delivery of requested information. QuickBooks Online subscription required. Additional terms, conditions and eligibility requirements apply.
  
  1. QuickBooks Online Advanced supports the upload of 1000 transaction lines for invoices at one time. 37% faster based off of internal tests comparing QuickBooks Online regular invoice workflow with QuickBooks Online Advanced multiple invoice workflow.
  
  2. Access to Priority Circle and its benefits are available only to customers located in the 50 United States, including DC, who have an active, paid subscription to QuickBooks Desktop Enterprise or QuickBooks Online Advanced. Eligibility criteria may apply to certain products. When customers no longer have an active, paid subscription, they will not be eligible to receive benefits. Phone and messaging premium support is available 24/7. Support hours exclude occasional downtime due to system and server maintenance, company events, observed U.S. holidays and events beyond our control. Intuit reserves the right to change these hours without notice. Terms, conditions, pricing, service, support options, and support team members are subject to change without notice.
  
  3. For hours of support and how to contact support, click here.
  
  4. With our Tax Penalty Protection: If you receive a tax notice and send it to us within 15-days of the tax notice we will cover the payroll tax penalty, up to $25,000. Additional conditions and restrictions apply. See more information about the guarantee here: https://payroll.intuit.com/disclosure/.
  
  Terms, conditions, pricing, special features, and service and support options subject to change without notice.
  
  QuickBooks Payments: QuickBooks Payments account subject to eligibility criteria, credit, and application approval. Subscription to QuickBooks Online required. Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services. For more information about Intuit Payments' money transmission licenses, please visit https://www.intuit.com/legal/licenses/payment-licenses/.
  
  QuickBooks Commerce Integration: QuickBooks Online and QuickBooks Commerce sold separately. Integration available.
  
  QuickBooks Money: QuickBooks Money is a standalone Intuit offering that includes QuickBooks Payments and QuickBooks Checking. Intuit accounts are subject to eligibility criteria, credit, and application approval. Banking services provided by and the QuickBooks Visa® Debit Card is issued by Green Dot Bank, Member FDIC, pursuant to license from Visa U.S.A., Inc. Visa is a registered trademark of Visa International Service Association. QuickBooks Money Deposit Account Agreement applies. Banking services and debit card opening are subject to identity verification and approval by Green Dot Bank. Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services.
  
  QuickBooks Time tracking: Additional fees may apply. Time tracking included in the QuickBooks Online Payroll Premium and Elite subscription services. Features vary. The QuickBooks Time mobile app works with iPhone, iPad, and Android phones and tablets. Devices sold separately; data plan required. Not all features are available on the mobile apps and mobile browser. QuickBooks Time mobile access is included with your QuickBooks Online Payroll Premium and Elite subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.
- ** Unlimited 1099 e-file: 1099 forms are e-filed with the IRS only for the current filing year and for payments recorded in QuickBooks. Includes state filings for eligible states participating in IRS Combined Federal/State Filing program. If you have the Bill Pay Basic plan, 1099 e-filing services will be charged at the standard 1099 E-file Service pricing.

Looking for something else?

QuickBooks

From big jobs to small tasks, we've got your business covered.

See how it works

Firm of the Future

Topical articles and news from top pros and Intuit product experts.

See how it works

QuickBooks Support

Get help with QuickBooks. Find articles, video tutorials, and more.

See how it works