Keeping Tabs on Cash

Since cash flow is such an important topic, and QuickBooks can be a tool to help I thought I’d post on it twice.  A key place to start is keeping yourself up to date on both your Receivables and your Bank Statements.  Make sure reconciliations are done every month and make sure you know where you stand.  Again, this type of activity carries a double bonus.  First, it’s part of your cash flow management program.  Secondly it sends the message to people you work with that you care about where the money goes and you are paying attention.  Both errors and the potential for fraud decline as a result.

Other Quickbooks tips I picked up from a blogger in Canada courtesy of my Small Business Trends RSS feed.

1.     Use the customer letters in QuickBooks to correspond about collections.  You do this in the customer center and start with the menu with the Microsoft Word icon. (QuickBooks does these letters by linking with Word).  There’s a wizard that walks you through the process, including the options to select the tone of your letter.

QuickBooks also has letters for credit applications and dealing with NSF checks.

2.  Use the customize invoices menu to set up reminders for invoices to print, and also to have overdue invoices printed to be sent again.

3. Set up invoices to summarize anything that is still outstanding

4. Set up finance charges or service charges for items that require multiple invoices over time.

 Creating these special forms may take a little time, but the odds that this time will translate directly into cash are better than many other tasks.  One other item to consider is once again, it sends a message that your business may be small, but it is serious about getting things done.  (As someone who has to stand up straight to hit 5 feet, this is a message I’m familiar with having to deliver!  LOL)