Why is cash flow the lifeblood of any small business?

Managing cash flow is pivotal in evaluating and steering your business's financial well-being and longevity.

28 Nov 2023

Managing cash flow is pivotal in evaluating and steering your business's financial well-being and longevity.

But have you delved into understanding your company's cash flow and its importance for your business' success?

Numerous business owners overlook financial reports entirely or merely glance at the profit and loss statement.

For a comprehensive understanding of your business's financial robustness, regular scrutiny of the profit and loss statement, the balance sheet and cash flow position reports are essential.

For instance, your business might undergo phases of negative cash flow while maintaining overall profitability.

Many small businesses experience cycles or seasons marked by tight or negative cash flows, posing significant stress if not adequately anticipated.

Armed with foresight into your financial standing, you can adeptly strategise accordingly and navigate through challenging cash flow periods.

Knowing the patterns of cash inflow and outflow allows strategic planning for expenses, operational costs, and liabilities by understanding when and where money enters and exits your accounts.

So, how can you improve your cash flow?

Reduce merchant fees.

One way to improve cash flow is to look at ways to reduce your business expenses, freeing up cash each month.

At PayNuts, we offer businesses the ability to lower their EFTPOS merchant fees or completely eliminate them with our Pay Nothing EFTPOS Plan.

Merchant fees can add up quickly and amount to a significant sum, resulting in a hefty monthly bill and eating up cash.

Traditionally, large merchant bills have just been accepted, but over the course of the last 5 years, surcharging your customers to cover these fees has been widely adopted. It has become the new norm in industries such as hospitality and retail.

PayNuts Merchant Portal

Monitoring your business revenue and transactions daily, weekly, and monthly is another way to help you stay on top of your cash flow.

PayNuts makes this extremely easy through the PayNuts merchant portal, providing a holistic view of your business’s financial health and feasibility helping you make the right decisions to keep your business operating effectively.

Same Day Funding

Ensuring you can access cash quickly and easily is another key factor in successful cash flow management.

How long does it take for your digital EFTPOS payments to be funded?

Some providers can take 2 to 5 days to fund transactions!

If you are looking for Same Day Settlements, PayNuts can offer this to you 7 days per week.

Having supported the SME market for over a decade, we understand the importance of quickly getting funds to our customers. Besides the banks, we are one of only a few that can provide Same Day Settlements into any Australian business bank account the very same day.

More ways to pay.

By offering your customers more ways to pay, you can effectively increase revenue and get your cash faster.

Gone are the days of solely invoicing customers and waiting 30 days for payment.

Why not combine payment options to facilitate easier and more streamlined payments?

You could use a PayNuts EFTPOS terminal for in-store purchases, our online gateway for all web or App purchases and our Payment Links for card not present or MOTO transactions, which includes full fraud protection options such as 3D Secure 2.0.

Getting set up with multiple payment options is easy, with one account and a single source for all reporting needs.

Ultimately, some businesses falter not because of profitability issues but due to inadequate cash flow management.

However, with guidance and comprehension of cash flow intricacies, business owners can streamline financial management, alleviate stress, and infuse a sense of enjoyment into business endeavours.

Studying cash flow patterns over time equips you with valuable financial insights to brace for future cash flow challenges or surpluses, enabling informed decision-making regarding expenditure or savings.

With a comprehensive understanding of your cash flow, you can make astute financial decisions grounded in precise, real-time data, overcoming guesswork and uncertainty.


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