The month of July is considered the busiest month of the year due to weddings. If you have a salon/spa, then it is evident that you are worried about controlling the cash flow. It is imperative that you fully understand every aspect of cash flow – it is the amount of money flowing in and out of your business at any given moment. The concept has its complexity which needs to be comprehended fully to have a firm control over your cash flow. As a salon/spa professional, you need to fathom the concept of the major impact cash management has on the bottom line of your business. Here are a few tips that can assist you in controlling the cash flow of your business in the busy month of July:
UTILIZE THE MONEY THAT YOU SAVE
It is significant that you use the cash that you have saved for bad times. In busy times, you can come across cash shortfalls. You can open a Money Market Account (MMA) that offers a decent interest rate and then link the MMA with your business checking account to account for these cash shortages.
SET TARGETS FOR CASHFLOW
The most efficient way of controlling cash flow is the preparation and implementation of ‘cash flow forecast.’ Allowing you can have a close check and balance on the cash flowing in and out of your salon/spa. It will predict the possible outcomes and shortfalls. Prepare a cash flow forecast before busy wedding months come along, this can assist you in controlling the amount of profit that you make or the losses.
MONITOR YOUR CASH FLOW ON A REGULAR BASIS
Since the month of July will be a hectic daily routine, you need to check the cash flow regularly. Online accounting software can help you in this aspect. Accounting software can assist in saving time, and help with all that massive amounts of work in managing the cash flow. Start relying on technology in today’s age. A perfect control over your cash flow even in the busiest days of the year.
MAKE THE PAYMENT PROCEDURE EASIER FOR THE CUSTOMERS
Making the payment process easier will help you since you won’t have to wait for the payment to arrive in your bank account. You should encourage the customers to pay upfront or use online payment.
HAVE A CUSHION FOR YOUR BUSINESS
Having a cash reserve for your business is crucial since good and bad days can come any time of the year. Your salon/spa might be facing the busiest days of the year in the month of July, but you need to have some cash saved in case you face cash shortfalls. The cash reserves might serve as a cushion for you in case you face harsh times.
You can use the simple tactics mentioned above to control the cash flow most efficiently. Utilize your resources and do not let the cash shortfalls diminish your high spirits. If you would like some assistance with your cash flow please call us for a free initial consultation. Call today at (844) 424-9637 or email us at email@example.com
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