{"id":105,"date":"2019-05-24T08:00:41","date_gmt":"2019-05-24T08:00:41","guid":{"rendered":"https:\/\/blog.pretty-books.com\/?p=105"},"modified":"2020-07-27T19:52:44","modified_gmt":"2020-07-27T19:52:44","slug":"solving-small-business-cash-flow-problems","status":"publish","type":"post","link":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/","title":{"rendered":"Solving Small Business Cash Flow Problems"},"content":{"rendered":"

Cash flow is a commonly recurring problem throughout all stages of your business.<\/strong><\/p>\n

No business ever gets off to a perfect start. Some of the issues you\u2019ll likely encounter will have to do with your budget<\/a>. As a business owner, you\u2019re likely to measure expenses incorrectly or there won\u2019t be enough money in your account to handle last-minute emergencies.<\/strong><\/p>\n

The Costs of Running a New Business<\/strong><\/h2>\n

High Overhead Expenses<\/h3>\n

Overhead expenses are typically the utilities associated with your business, such as the cost of renting your office space, your telephone network, electricity bills, and similar expenses.<\/p>\n

Excess Inventory<\/h3>\n

It\u2019s easy to assume that everyone will be interested in your products firsthand and rush to work with you. However, unless you\u2019ve engaged in extensive advertising and have a long line of pre-orders, you\u2019re not likely to experience solid business until some time has passed.<\/p>\n

As a result, you may wind up with more products than necessary in your warehouse. You\u2019ll also have spent more money than required, and you\u2019re left with several items at the end of the month that may go unsold.<\/p>\n

Not Collecting Your Receivables on Time<\/h3>\n

Clients don\u2019t always understand that you have expenses or bills to pay, which means they might delay when it comes to paying invoices. This, in turn, can lead your company into not having the money it needs to take care of itself. This can include utility payments, equipment rentals or being unable to provide refunds to clients.<\/p>\n

Over-Borrowed Money<\/h3>\n

Over-borrowing money is likely to spike your debt to income ratio. In other words, you\u2019ll owe far more than you\u2019ll be earning, which can cause your business to suffer down the line or shut down prematurely.<\/p>\n

Not Being Aware of Your Payables<\/h3>\n

If you\u2019re not aware of what you owe, you\u2019re likely to miss out on payment dates. This can lead to fees, penalties or higher interest, meaning you\u2019ll wind up owing more than what you originally borrowed. You\u2019ll have to dig deeper into your funds, and you\u2019ll have less to contribute to your business operations.<\/p>\n

An Expert in Financial Management Will Work for You<\/strong><\/h2>\n

If your budget allows, you should make room for an expert in financial management along the way. They can help you organize your finances so you pay the best rates for utilities and don\u2019t spend too much when it comes to inventory.<\/p>\n

They can also tackle additional issues. For example, one common problem you may experience is a slow invoice period. You\u2019re required to allow your clients up to 60 days to pay set invoices, but you may find it difficult to wait that long. You have expenses rolling in, and you need your money as soon as possible.<\/p>\n

An expert in financial management can work with your clients and offer them incentives to pay faster.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cash flow is a commonly recurring problem throughout all stages of a business. No business ever gets off to a perfect start. Some of the issues you\u2019ll likely encounter will have to do with your budget. As a business owner, you\u2019re likely to measure expenses incorrectly or there won\u2019t be enough money in your account to handle last-minute emergencies.<\/p>\n","protected":false},"author":3,"featured_media":688,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[33],"tags":[11,10,12],"yoast_head":"\nSolving Small Business Cash Flow Problems in Your Business<\/title>\n<meta name=\"description\" content=\"Small business cash flow problems can occur at any time, but they're the most prominent if your business is still in startup mode. Here\u2019s how to solve them.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Solving Small Business Cash Flow Problems in Your Business\" \/>\n<meta property=\"og:description\" content=\"Small business cash flow problems can occur at any time, but they're the most prominent if your business is still in startup mode. Here\u2019s how to solve them.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/\" \/>\n<meta property=\"og:site_name\" content=\"Pretty Books Magazine\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-24T08:00:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-27T19:52:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kristine Nguyen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/#organization\",\"name\":\"PrettyBooks\",\"url\":\"https:\/\/prettybooks.com\/magazine\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2022\/05\/pblogo.png\",\"contentUrl\":\"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2022\/05\/pblogo.png\",\"width\":226,\"height\":52,\"caption\":\"PrettyBooks\"},\"image\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/#website\",\"url\":\"https:\/\/prettybooks.com\/magazine\/\",\"name\":\"Pretty Books Magazine\",\"description\":\"A collection of knowledge, stories, and insights into today\u2019s accounting world.\",\"publisher\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/prettybooks.com\/magazine\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png\",\"contentUrl\":\"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png\",\"width\":1000,\"height\":600},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#webpage\",\"url\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/\",\"name\":\"Solving Small Business Cash Flow Problems in Your Business\",\"isPartOf\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#primaryimage\"},\"datePublished\":\"2019-05-24T08:00:41+00:00\",\"dateModified\":\"2020-07-27T19:52:44+00:00\",\"description\":\"Small business cash flow problems can occur at any time, but they're the most prominent if your business is still in startup mode. Here\u2019s how to solve them.\",\"breadcrumb\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/prettybooks.com\/magazine\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Solving Small Business Cash Flow Problems\"}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#webpage\"},\"author\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/#\/schema\/person\/50c97b520cb4f2785ed1df639623dc55\"},\"headline\":\"Solving Small Business Cash Flow Problems\",\"datePublished\":\"2019-05-24T08:00:41+00:00\",\"dateModified\":\"2020-07-27T19:52:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#webpage\"},\"wordCount\":491,\"publisher\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/#organization\"},\"image\":{\"@id\":\"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png\",\"keywords\":[\"cash flow solutions\",\"Small business cash flow problems\",\"small business consulting services\"],\"articleSection\":[\"Accounting\"],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/prettybooks.com\/magazine\/#\/schema\/person\/50c97b520cb4f2785ed1df639623dc55\",\"name\":\"Kristine Nguyen\",\"sameAs\":[\"http:\/\/pretty-books.com\"],\"url\":\"https:\/\/prettybooks.com\/magazine\/author\/kristine\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Solving Small Business Cash Flow Problems in Your Business","description":"Small business cash flow problems can occur at any time, but they're the most prominent if your business is still in startup mode. Here\u2019s how to solve them.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/","og_locale":"en_US","og_type":"article","og_title":"Solving Small Business Cash Flow Problems in Your Business","og_description":"Small business cash flow problems can occur at any time, but they're the most prominent if your business is still in startup mode. Here\u2019s how to solve them.","og_url":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/","og_site_name":"Pretty Books Magazine","article_published_time":"2019-05-24T08:00:41+00:00","article_modified_time":"2020-07-27T19:52:44+00:00","og_image":[{"width":1000,"height":600,"url":"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_misc":{"Written by":"Kristine Nguyen","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Organization","@id":"https:\/\/prettybooks.com\/magazine\/#organization","name":"PrettyBooks","url":"https:\/\/prettybooks.com\/magazine\/","sameAs":[],"logo":{"@type":"ImageObject","@id":"https:\/\/prettybooks.com\/magazine\/#logo","inLanguage":"en-US","url":"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2022\/05\/pblogo.png","contentUrl":"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2022\/05\/pblogo.png","width":226,"height":52,"caption":"PrettyBooks"},"image":{"@id":"https:\/\/prettybooks.com\/magazine\/#logo"}},{"@type":"WebSite","@id":"https:\/\/prettybooks.com\/magazine\/#website","url":"https:\/\/prettybooks.com\/magazine\/","name":"Pretty Books Magazine","description":"A collection of knowledge, stories, and insights into today\u2019s accounting world.","publisher":{"@id":"https:\/\/prettybooks.com\/magazine\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/prettybooks.com\/magazine\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#primaryimage","inLanguage":"en-US","url":"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png","contentUrl":"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png","width":1000,"height":600},{"@type":"WebPage","@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#webpage","url":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/","name":"Solving Small Business Cash Flow Problems in Your Business","isPartOf":{"@id":"https:\/\/prettybooks.com\/magazine\/#website"},"primaryImageOfPage":{"@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#primaryimage"},"datePublished":"2019-05-24T08:00:41+00:00","dateModified":"2020-07-27T19:52:44+00:00","description":"Small business cash flow problems can occur at any time, but they're the most prominent if your business is still in startup mode. Here\u2019s how to solve them.","breadcrumb":{"@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/prettybooks.com\/magazine\/"},{"@type":"ListItem","position":2,"name":"Solving Small Business Cash Flow Problems"}]},{"@type":"Article","@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#article","isPartOf":{"@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#webpage"},"author":{"@id":"https:\/\/prettybooks.com\/magazine\/#\/schema\/person\/50c97b520cb4f2785ed1df639623dc55"},"headline":"Solving Small Business Cash Flow Problems","datePublished":"2019-05-24T08:00:41+00:00","dateModified":"2020-07-27T19:52:44+00:00","mainEntityOfPage":{"@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#webpage"},"wordCount":491,"publisher":{"@id":"https:\/\/prettybooks.com\/magazine\/#organization"},"image":{"@id":"https:\/\/prettybooks.com\/magazine\/2019\/05\/24\/solving-small-business-cash-flow-problems\/#primaryimage"},"thumbnailUrl":"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png","keywords":["cash flow solutions","Small business cash flow problems","small business consulting services"],"articleSection":["Accounting"],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/prettybooks.com\/magazine\/#\/schema\/person\/50c97b520cb4f2785ed1df639623dc55","name":"Kristine Nguyen","sameAs":["http:\/\/pretty-books.com"],"url":"https:\/\/prettybooks.com\/magazine\/author\/kristine\/"}]}},"jetpack_featured_media_url":"https:\/\/prettybooks.com\/magazine\/wp-content\/uploads\/2019\/10\/pb_reading-cash-flow.png","_links":{"self":[{"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/posts\/105"}],"collection":[{"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/comments?post=105"}],"version-history":[{"count":9,"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/posts\/105\/revisions"}],"predecessor-version":[{"id":921,"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/posts\/105\/revisions\/921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/media\/688"}],"wp:attachment":[{"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/media?parent=105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/categories?post=105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prettybooks.com\/magazine\/wp-json\/wp\/v2\/tags?post=105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}