Your cash flow cycle is the amount of time it takes you to get money back into your business after you have performed work.
One of our goals as business owners should be to shorten our cash flow cycle so it’s as small and efficient as possible (remember you want your money to work for YOU; the quicker it’s in your bank account, the quicker you can put.it.to.work. ).
One of the simplest ways to shorten your cash flow cycle is to make sure that your policies are polished, clear, and professional.
Why? Because good policies help you:
- Define the scope of work clearly
- Set out payment expectations
- Educate your clients on HOW to pay you
- Layout payment deadlines
- Spell out how disagreements will be worked out
When all of these policies are in place, current and prospective clients will immediately feel a sense of ease. And happy clients means a positive experience, and positive experiences mean more referrals, and more referrals mean BIGGER PROFITS.
This is also why the value of a good virtual bookkeeper is essential. It ensures that your small business finances stay organized and that you are able to keep a clear track of your invoices and payments.
Ultimately, financial organization and clean policies speak to your professionalism. Make sure you always:
- Have your clients sign a contract
- Put your policies up on your website (and share them with your client during onboarding!)
- STAY ORGANIZED. STAY PROFESSIONAL. Don’t miss deadlines, don’t miss invoices.
- Hire a GOOD bookkeeper you can trust to help all of these policies stay intact and organized so that your customers are guaranteed to have a positive experience.
As an expert virtual bookkeeper and an entrepreneur for over 20 years, I can tell you that clear financial policies are KEY to creating an efficient system for getting PAID faster, making your clients feel at ease, and ensuring repeat business for higher profits.
Download my free Policies and Professionalism Cheat Sheet for tips on what your financial policies should include, how to implement them, and actionable steps for a stellar customer experience.