Financial

There are only two basic ways to improve cash flow: 1) increase the inflow of cash or 2) reduce its outflow. To accomplish both ends, technology provides a number of great solutions.

Increase inflow

1. Increase sales by adding or expanding online activities.
2. Use apps to complete sales in the field. Read a review of the top 10 mobile credit card processing apps.
3. Sell for cash only rather than agreeing to send an invoice by offering electronic payment options to customers.
4. Send invoices electronically to speed up collections.
5. Have customers pay electronically. Instead of waiting for payment by mail, ask customers to transfer funds to your bank account.
6. Earn discounts from vendors by paying bills early. Compare the savings to the impact it has on your cash flow.

Decrease outflow

1. Reduce software charges by switching to the cloud. Many small businesses have found that online solutions are less costly than downloading software or buying packaged products.
2. Eliminate travel expenses by scheduling meetings online. Web conferencing can take the place of many in-person meetings.
3. Reduce inventory levels. Use accounting software and other technology for better inventory management.
4. Reduce labor costs by automating wherever possible. For example, one recent report shows mobile apps save small businesses more than 1 billion hours annually.
5. Reduce paper costs. Eliminate paper letters, invoices, and other communications where possible; send information electronically (by fax through your computer, email, or via smartphone).
6. Pay bills electronically. This enables you to pay at the last minute without being late and adversely impacting your credit history.
7. Pay taxes electronically. Using EFTPS you can time the date of payment. The government doesn't charge anything for using EFTPS.

Resource
eBusiness Now and SCORE offer a free online workshop on applying technology to improve cash flow.