Your small business guide to managing payables
Did you know that 41% of small businesses struggle with cash flow and 16% of businesses report payment fraud? How you manage your payables can have a significant impact on your cash flow and business relationships. Thoughtful planning and predictability (and the six basic guidelines below) help ensure you have cash available to meet your immediate and longer-term needs.
- Log the source, sum and date of all cash outflows to assess where your money is going and how often.
- Note the monthly and quarterly patterns, seasonal trends and other recurring spending behaviors.
- Set up a reporting system that you routinely update to track outgoing cash flow and to plan ahead.
- Review suppliers and expenses regularly to find opportunities to lower costs.
- Set expense budgets for your employees.
- Use a credit card for expenses to extend payment terms.
For more guidance on managing payables — including tips on finding and working with vendors, setting payment terms and more — visit the Small Business Community to read the full article or contact your Bank of America® Small Business Banker.
Looking for even more ways to maintain a healthy cash flow? Check out our 10 cash flow tips for your small business.