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Cash flow management for business success

By Magdalena Hernández de la Fuente

It is always more of a business plan based on cash flow management

In these tough economic times, getting money for starting or simply running a business can be somewhat difficult. No matter what line of investment/business you go into, you will need enough capital and a really good cash flow management to get everything going profitably. Besides, maintaining smooth cash flow management in any line of business in very important for your success as an entrepreneur. Being a concept that seems overused these days, I’m sure everybody understands what I mean by the term “cash flow management”. In any line of business, whether small or large, you need to manage nearly every piece of the enterprise, from remaining on top accounts receivable, to covering the lines of credit and carefully managing the inventory, and tracking commissions to the work force in general.

According to most entrepreneurs, cash flow management problems can originate apparently out of nowhere. Hence positive cash flow management is the sufficient stability of regulating the cash flow in and out of your business. If you’ve employees or sales people who help you through your business, you can consider adding commissions to every pay check.

Although some companies consider tracking and distributing commissions after they have been paid by their client, most experienced entrepreneurs would recommend the idea of adding commissions to every pay check. This offers you greater opportunity and higher overall potential to maintain good economic security, stability, expenses and benefits, which are the key element towards maintaining good cash flow.

For example: a client can send you a payment for $975 when they owed you $1,000. They used the remaining $25 to send you a same-day electronic deposit and they subtract this from the invoice amount. You can they pay your sales person on the gross revenue (975) instead of the list invoice price.

So if you looking to maintain a profitable cash flow in the most effective way, you should consider using Blitz. Blitz is a nimble and extremely flexible commission tracking software meant to help have the best guide in managing a profitable commission plan.

Sources

Tags: Commissions

About Blitz

Blitz is a global software for sales commissions. We help our clients to track and calculate sales commissions effectively and on-time.