The most easily neglected but arguably most important part of business management is cash flow. While it is easy to get wrapped up in the day-to-day challenges running an electrical business, it doesn’t take long for cash flow mismanagement to catch up on you and create bigger problems. .
In fact, a study from a US bank found that 82% of businesses put their failure down to poor cash flow management.
Here are three tips to ensure that your electrical business runs smoothly and maintains proper cash flow.
Ensure clarity with centralised data
Do you dream of being able to deep dive into each job, look at dispatch times, track how long invoices take and measure how often you receive payments? Well, dream no more! Job management software allows you to gain clarity by organising all business information in one place. Gone are the days of searching aimlessly through piles of spreadsheets for the answers you need to make business decisions.
Having multiple systems that do not link well is inefficient. Even worse, paperwork could be outdated in your systems but still in use.
With business data in one location, you can achieve better clarity on where cash is coming and going.
Speed up invoicing with software
Implementation of all-in-one software is the first step to greatness. Next, you can focus on making it easier to invoice customers and collect payment.
With invoicing software, you can set up automatic invoicing for recurring jobs and even integrate with your accountancy package for accurate financial data.
Some software tools even give your engineers the power to create and send invoices on-site. A process like this will save your staff time and ensure invoices are sent to customers as soon as possible, which in turn helps speed up payment.
Off flexible payment options
National Australia Bank’s (NAB) ‘Supporting Economic Recovery Report’ highlights that 53% of small businesses aren’t being paid on time.
The solution? Offer customers multiple ways to pay so that they can choose which payment option works best for them. For example, this could include accepting credit cards in the field through systems such as Square or taking payment over the phone.
Another option for payment flexibility? Software that automates payment. Automatic invoicing and payment processing eases the pressure on staff and ensures your payments stay up to date so that you can maintain proper cash flow at all times.
simPRO is a leading field service management software solution for service, project and maintenance contractors. simPRO helps your business connect the office to the field, deliver exceptional customer service and gain invaluable insights with automated processes, streamlined workflows and in-depth business reporting. Achieve complete business visibility with this comprehensive end-to-end solution.
Visit the simPRO website to learn more.