Don't delay sending Invoices and collecting payment.
Ideally, the accounts receivable aging summary should be reviewed at least once per month. Someone in the office needs to follow up on past due receivables. Quickly send your customers invoices and make it easy to pay. Consider using electronic payment options (QB Payments, Melio, Veem, Square Space)
A high growth rate in revenue can cause a growth in assets, which creates operating cash flow issues. Consider reaching out to vendors that offer payment options/terms, extending those payment terms can go a long way to improving cash flow. Understanding how your business works and your cash flow needs is CRITICAL if your business is experiencing growth. Consider working with an accountant that provides CFO services.
Always borrow as long term as possible. The longer the payback period is, the lower the monthly payment, which helps cash flow. Always match asset purchases with the correct financing. A line of credit with your bank should be used in the short term (less than one year). A line of credit or high interest credit card should not be used to buy long term assets. It is common to see business owners struggling to survive borrowing money from wherever they can, but this quick fix can turn into a nightmare down the road.
Stop Wasting Money
Just because its a "business expense" and you are saving money on taxes, does not mean it is a smart decision. It is very common to review the Profit & Loss and find all types of monthly subscriptions that get forgotten about. Maybe a trip to Staples for paper turns into $300 new office chair. Frequent "business meals" (which probably don't qualify for a tax deduction, but that is a separate post) at restaurants. Spending $100 to save $25 in taxes is still a cash outflow of $75, and it adds up through out the year. Commit to reviewing the transactions line by line every-month. If it is a luxury and does not grow revenue, it needs to be cut.
James Fleming III
Sentinel Tax & Accounting