The thing that keeps most business owners up at night is whether they have enough cash to pay their employees and their bills. According to Invoicera, 68.9% of business owners fear they’ll lose their business due to a lack of available cash, and 58.2% identify slow-paying customers as their biggest challenge in managing cash flow. You never know what economic crisis is around the corner, so it’s critical to preserve cash and have a crystal-clear picture of your company’s financial position day-to-day.
This chapter will walk you through cash flow management best practices and offer tips and resources that will help you:
- Put the right tools and processes in place
- Make it easy to get paid consistently
- Gain visibility into your finances
- Cut expenses to build resiliency
Filled with uncertainty, many small businesses that MSPs support are closing their doors either temporarily or permanently. With that in mind, many MSPs have less than a month of cash reserves on hand and still have the responsibility to support their staff.