Handling Cash Flow with a Janitorial Business Start up

If you are starting a janitorial business, you will need to understand the basics of how to handle cash flow. Handling cash flow with a business is critical. Here are the basics of how to handle cash flow with a janitorial business start up.

Collection and Billing

When you are getting started with a janitorial business, you need to spend some time thinking about your collection and billing policies. You want to make sure that you set up a system that is going to get your bills out to your customers as quickly as possible. You will also want to set the terms for payment for your customers. For example, you may want to drop a bill off at their office or residence as soon as you provide the service for them. You may also want to have automatic statements generated from a computer system and sent out at the beginning of the month. You may decide to set thirty-day terms with your customers. This means that they have to pay their bills within 30 days of receiving them. You can play with the terms and see what works best for you and your customers.

Deposit Money Quickly

When you receive payments, you need to get in the habit of depositing it quickly. If you receive a check or cash from someone, you need to put it in the bank the same day. This allows you to get the money into your account and start using it quicker. If you have to meet your obligations, you need to make sure that the money is in the bank account on time. Some banks will allow you to scan checks from your office and send the images to the bank for deposit. If you can set up this type of system, it is going to make things a lot easier on you and you will be able to get the money into your account quicker. When you are going to deposit checks, you do not want to drop them off in a night receptacle at the bank or with an automatic teller. You want to make sure that you give it to an actual person and get a receipt.

Pay Bills As Late As Possible

When it comes to paying your own bills, you want to make sure that you do it as late as possible. Yu want to pay them on the due date or a few days before the due date. This way, you will be able to have enough money in your account at all times for unexpected expenses that could come up. By doing this, you will be able to manage your cash flow more effectively and stay on top of the expenses.

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