Wealth Vision Mastery Academy

Today, I am going to share with you the reason why it is important that you are not too lenient with your customers. This important concept forms Rule Number 2 of Managing Cash Flow in Your Business. Summary - Be direct and fair with your customers without being seen as a pushover. A clever but polite invoicing strategy will usually get you a long way. But don’t be afraid to take more formal action if you need to. Keep a close watch on your accounts receivable turnover at all times. If it’s trending up, it might be time to step up your efforts at chasing payment. As receivables age, their quality goes down, so you should act sooner rather than later. Cost of Acquiring and Retaining a Customer As we all know, obtaining customers can be time consuming and expensive. The cost of customer acquisition versus customer retention could reach as high as 700%, according to a report by Frederick Reichheld of Bain & Company as below: Acquiring a new customer can cost 6 to 7 times mor

Welcome to a new series of blogs for 2018 on managing Cash Flow in your business. There are five simple rules that will help you manage your company's cash flow better. Those rules are: Rule Number 1 - Keep your books up to date and accurate. Rule Number 2 - Don't be too lenient with your customers. Rule Number 3 - Keep your accounting simple. Rule Number 4 - Keep your business and your personal finances separate. Rule Number 5 - Build a cash reserve. Today, I am going to delve deeper into the first rule - the rule of keeping your boos up to date. Rule Number 1 - Keep your books up to date and accurate.  Often i get asked "why do i need to keep my books up to date? It is too time consuming and i cannot see any value in it." My simple answer to that question is: Your cash flow is only as good as your accounting and reporting.  Don’t feel alone, financial record-keeping is the bane of existence for most small business owners and managers. When

Hello fellow entrepreneurs, Is money flowing out of your company faster than it's coming in? Take a moment to think about the following three questions. Do you manage cash flow successfully in your business?  Do you improve your internal process so as to maximise your cash flow?  Do you forecast your cash flow for the next three months? If you answered yes to at least one of those questions, then you are on the right boat. Trying to run a business without managing cash flow is like trying to paddle a boat without an oar. Even if you succeed, it will be an upstream exercise guaranteed to wear you out. Cash flow is important for all businesses, but it is critical for early startups. If you cannot manage your cash flow within the first year, you will likely not survive the second year. The management of cash flow is one of the most challenging tasks for small business owners. Having to continually nudge customers for payment uses up valuable time and can be dishearte

Hello, Cash is the lifeblood of any small to mid-sized company, especially high-growth and/or highly leveraged ones. Still, many businesses struggle to maintain an accurate picture of current cash flow position and how that position will change in the future. Cash flow is a key indicator of financial health in your business. Without cash in your business, there is a good chance that your business will not survive.  The Small Business Administration says that "inadequate cash reserves" are a top reason startups and growing businesses don't succeed. It's called "running out of money," and it will shut you down faster than anything else. A common misinterpretation i hear often is that Profit = Cash.  Wrong!  Profit does not equal cash. There are too many variables outside of Profit & Loss Statement (Income Statement) that can impact upon your cash flow. Variables such as taxation payments, purchase of capital equipment and loan repayments do not

Welcome to a new series of blogs for 2018 on managing Cash Flow in your business. In last month's blog, I mentioned that Cash is King is so critical for businesses starting up, growing or even exiting. At any stage of the business life cycle, cash is vital. Without cash, there is not a chance for business survival. I stated five simple rules that will help you manage your company's cash flow better. Those rules are briefly restated again. Rule Number 1 - Keep your books up to date and accurate. Rule Number 2 - Don't be too lenient with your customers. Rule Number 3 - Keep your accounting simple. Rule Number 4 - Keep your business and your personal finances separate. Rule Number 5 - Build a cash reserve. Over the next five weeks, I shall explain in more detail how you can implement these rules into your business. Today, I am going to delve deeper into the first rule. The first rule of keeping your books up to date. Rule Number 1  - Keep your books up to da

Hello my friend, Have you experienced loss of funds in your business through "unauthorised payments?" Not only is it embarrassing for your business but does create a lot of stress and perhaps, financial hardship. This situation should serve us a reminder to check our own internal processes to prevent this type of fraud which often, is not recoverable. It is not only large organisations that are vulnerable to misuse of their bank accounts, small businesses are regularly hit by unscrupulous use of their banking platforms. This mean it’s incredibly important to get the processes and procedures right. Every business (small, medium or large) should have its own internal processes and procedures in place to minimise risk. These processes and procedures should be tested and reviewed on a regular basis rather than waiting for an incident to occur before testing. By that time, it is too late. Warning Signs Fraud can be perpetrated from those outside of any organisation, but

Hello fellow entrepreneurs, Clients not paying on time is a headache and some times a nightmare for any small business. Small businesses suffer significantly more than large businesses because they do not necessarily have access to reserves of cash or third party funding. Late payments are a global issue. Governments around the world are now starting to pay attention to this issue for small business entrepreneurs. As long as businesses have been sending invoices, customers have been paying them late. Here's how to speed them up with some great tips that you can adopt into your business today. 1 - Send your Invoice immediately. Your client can’t pay until you've invoiced them, so send your invoice fast. There is no logical excuse for invoices being prepared after the goods or services have been supplied. With today's cloud accounting software, an invoice can be prepared on site and sent from your mobile phone. 2 - Invoicing to be 100% error free. Make sure your i

Hello my fellow entrepreneur, Did you know that succession planning is important in your business? Why is it important? Because succession planning focuses on preparing the business for two purposes: business entrepreneur’s planned exit and business entrepreneur not being in the business (eg holiday or sickness) I know that my next sentence may sound a little crazy, but it's true. At the time of starting your business, you should have a succession plan considered. It's true. According to Fidelity, "from the first day you start your business, you want to make sure your business plan is coordinated with your succession plan. Many business owners are so wrapped up in their business that they don’t even think about a succession plan until a year or two before they want to retire." According to The U.S. Small Business Administration, nearly 70% of small business owners lack a real succession plan. Family-owned businesses, for example, may not feel the need to

Hello my fellow entrepreneurs, Do you feel like your customers are treading on you with delayed payments? You are not alone. Thousands of companies across the world are feeling the pinch from some of their customers not treating them with respect and making late payments. Small business entrepreneurs find it difficult to make their own payments to suppliers and employees if big companies do not play fair and fail to make their payments on time. There has been plenty of media attention in 2017 where Federal Governments around the world have tried to regulate larger size companies to pay smaller size companies in a more timely manner. Today, i wanted to share with you some credit management mistakes that i see quite often and these mistakes can be impacting upon your business. Please take a moment to review these common mistakes to see if any of these mistakes apply to your business. If you are experience any of these mistakes, now is the time to correct these mistakes befor

Welcome back to our second edition of Xero in on the benefits your business can enjoy with cloud accounting software. In this blog, i want to talk briefly on why cloud accounting software makes perfect sense for your business. This is not a junky sales commercial but an important business strategy that you should seriously consider to implement into your business. In the last blog, i shared with you some interesting statistics about business entrepreneurs transferring their accounting software to the cloud. If you would like to see those statistics again, please click the link . Let us take a moment to understand the problems that business entrepreneurs face with traditional accounting software. The data in the system isn’t up to date and neither is the software. It only works on one computer and data bounces from place to place. If you have multiple users, the system can be very slow with error messages occurring Only one person has user access. Key people can't acce

Are you still preparing your bookkeeping records by handwritten cash book or excel spreadsheet? Think about the time that you are wasting when you could enjoying a better lifestyle or being more productive for your business. Let us briefly explain what is meant by cloud accounting. Cloud accounting, serves the same function as accounting software that you would normally install on your computer, except it runs on a remote server that you access using your web browser, over the Internet. Data is securely stored and processed on servers—or “in the cloud”. This means you are able to access your business financials from anywhere, and using any device, as long as you are connected to the Internet. As you can see, the big benefit of cloud computing is that it lets you get at your data anytime, anywhere. The cloud breaks the chain between your office computer and your business information. The cloud takes the stress out of computing. It lets you use computers, laptops, tablets, sm

Welcome to a new series of blogs for 2018 on managing Cash Flow in your business. You have heard of the common expression that “Cash is King”. It's so true and cash is vital for small business survival. Cash is King is critical for businesses starting up, growing or even exiting. At any stage of the business life cycle, cash is vital. Without cash, there is not a chance for business survival. Invoicing is part of good cash flow management. Once you've delivered a product or service, don't wait to invoice - invoice immediately. A product or service that has been delivered is the closest thing your business has to cold, hard cash. The sooner you invoice your client, the sooner you'll receive payment. Some cloud accounting packages have mobile app solutions that will enable you to invoice at client's premises or when you sell a product. Delayed invoicing will harm your cash flow and your business. Consider sending invoices immediately, or on a daily basis, dep