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6 Strategies for Accelerating Cash Flow in Your Business · 1. Reduce your spending. · 2. Create additional revenue streams. · 3. Offer discounts for fast payments. About Us Locations Careers Security Center Contact Us 6 Strategies for Accelerating Cash Flow in Your Business Every business could certainly benefit from an increase of cash flow. More money in the bank means more opportunities to hire additional employees, expand operations, invest in new products and services and, ultimately, grow your business. The challenge is getting your cash flow moving at a more efficient speed, allowing you the freedom to invest. Here are six easy to implement business strategies that will increase your cash flow and get you on the fast track to higher profits. Decreasing your spending is one of the more obvious ways to increase your cash flow. Of course, this is easier said than done. But even a few minor reductions can result in major returns. The first step to implementing this strategy is to carefully analyze all of your spending. How much do your office supplies and electrical bills cost every month? How much do you pay for insurance, employee salaries, and other bills? After analyzing your spending, look for areas that can be reduced. However, it’s important to approach spending cuts carefully, because pay cuts can result in driving away employees. 2. Create additional revenue streams. One smart way to tap into a new revenue stream and increase cash flow is Central Bank’s Commercial Payments solution. This powerful and automated Accounts Payable (AP) system will streamline your current payment process into a faster, more efficient payment system that requires less management — saving you more money and time. And because Commercial Payments is credit card based, Central Bank will pay you a revenue share, or cash back, on every dollar of digital payments processed through the system.
Oct 27, 2020 ... Rising out-of-pocket costs increase patient A/R, and as this becomes the norm, now is the time to set up systems that will accelerate cash ... Accelerating Cashflow Through Up-front Collection As deductibles continue to rise and more financial responsibility is placed upon the patient, the urgency to improve patient collection timelines becomes more crucial. In fact, one of our customers at Rivet recently commented, “For the first time in my experience managing a practice, our patient A/R is greater than our insurance A/R!” Rising out-of-pocket costs lead to increased patient A/R, and as this shift becomes the norm, now is the time to set up systems that will accelerate cash flow through up-front collections. Note: Average general annual deductibles are among all covered workers. Workers in plans without a general annual deductible for in-network services are assigned a value of zero. Source: KFF and KFF/HRET Employer Health Benefits Surveys. Consumer Price Index, U.S. City Average of Annual Inflation (April to April); Seasonally Adjusted Data from the Current Employment Statistics Survey (April to April) Since 2008, general annual deductibles for covered workers have increased eight times as fast as wages. Deductibles have skyrocketed as a result of a different dynamic in health insurance plans, and in the case of high-dollar visits, we are seeing the meat of the residual balance falling on the patient. These types of balances can be stressful for both the patient and the physician, and 67% of Americans say they are either very worried or somewhat worried about unexpected medical bills. Since patient collections are becoming a more relevant problem as the out-of-pocket costs increase every year, now is the time to work to increase your patient’s propensity to pay through an improved payment experience. This begins with:
Cash Flow Acceleration is Critical to Profitability One of the most important ways a Chief Financial Officer (CFO) can make their company more profitable is by accelerating cash flows. The following six strategies are just a sampling of some of the techniques used by many CFOs today. Prepare a monthly cash budget with weekly forecasts to track actual cash against projections. This tool will enable you to better control where your money is going when and help you prioritize future expenditures. Sellers can reduce their nonpayment risks by not accepting large orders from unproven customers without doing a full credit check. Talk with the prospective customer’s current suppliers to see what their payment history has been. Business owners can take command of their collections by requiring a down payment before buying supplies or starting work on large orders. If you feel there is too much risk, offer the buyer a smaller supply with the provision that larger supplies will be provided when full payment has been received on their previous order. Centralize purchasing for your firm within major profit and loss centers. This process reduces administrative costs. Standardized purchasing policies and procedures promote efficiency by preventing duplication of efforts. When negotiating with your vendors, agree on the price of the goods and services first then negotiate the best payment terms you can get to save cash. Prevent costly supply disruptions which can bring sales and cash flow to a full stop. Use multiple suppliers for critical items whenever possible. Know your suppliers’ financial status so you can alleviate potential disruptions before they happen.
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