Businesses are constantly striving to work smarter and increase profits.
Revenue provides a measure of the effectiveness of a company’s sales and marketing efforts and product developments.
A diverse mix of revenue streams can help provide a safety net for inevitable market fluctuations or downturns. If your business’s revenue flow grinds to a halt for whatever reason, you only have a limited time to fix it before your business goes belly up.
To streamline and improve your business’s revenue flow/s, follow these five tips below:
Real-Time Payment Tracking
All businesses need to implement real-time payment tracking to keep an accurate overview of their finances and expenses throughout the year.
Manually, it would require the diligent recording of every business expense, no matter how small, to help guide budgeting teams and put together spending plans. Instead, use software designed for this exact purpose.
Tracking all of your business expenses in detail will put your business in a better position to make decisions. This is also known as maintaining financial awareness, and it can be massively beneficial for companies of any size.
Billing Automation
Even the most profitable companies can experience cash flow issues when their debts are due before they have collected enough money from sales to cover their mounting bills.
One of the simplest methods to fix this and boost your business is to move away from manual invoicing and use software to generate and send bills automatically. That will cut out delays and human error.
Lastly, don’t overlook the small details that make payment effortless. Clearly list your accepted payment methods, late payment fees, and display the due date in bold and in more than one place.
Simplify Your Order-To-Cash Process
Order to cash, also known as OTC, is a company’s entire order processing system and one of the most crucial business processes that begins the second your customers place an order, and it doesn’t end until payment is received.
It is the heartbeat of every business, yet in many businesses, it is one of the most error-riddled and fragmented workflows.
To gain a clear understanding of this multi-step process, read this order-to-cash guide.
The O2C system is a critical part of getting and maintaining a healthy cash flow. One of any business’s O2C goals should be aiming to cut down on the time between when an order is received and when payment is received.
Payment Options
Your revenue streams will only ever flow nicely if they are wide enough.
As much as that sounds like new-age proverb nonsense, it makes sense if you think about it. Offering your customers multiple payment options will mean that no matter what payment method they prefer, you accept it.
Offer credit cards, digital wallet payment, BNPL, and other options to reduce cart abandonment and broaden your customer base.
Incentivize Early Payments
Even though this is one of the most logical tips, it is often also one of the most overlooked ones.
Everyone likes a little reward; it is the literal basis of the concept of incentives. By incentivizing early payments for your customers, you can improve cash flow, cut down on administration costs, and reduce bad debt.
More often than not, these work best in the form of a discount percentage. Depending on your business’s average order value, you can either do the same or find another way to reward customers, such as free deliveries.
To End
Start streamlining and improving your business’s revenue flow by following these tips and you will start growing in no time!
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