Strategies for Maintaining a Healthy Cash Flow
Having a stable cash flow is integral to a well-managed business, but it can be challenging to keep up when smaller day-to-day tasks get in the way. To get a better idea of how builders and designers are maintaining a steady cash flow, home remodeling and design firm Houzz asked housing professionals for their best tips and strategies. From communicating clearly with clients to setting up payment schedules, here’s what they had to say:
“Use cash flow sheets and have monthly meetings and assessments to ensure you’re on track and booking ahead,” says Jay Gentle of Prestige Build and Management.
“I keep a spreadsheet of which invoices need to be sent, when they have been, and when they’ve been paid,” says interior designer Anna Auzins. “I know how much I need to invoice each month and schedule invoices accordingly.
“I also know how much is in the pipeline, again with a spreadsheet showing the total amount to be billed for each project, which invoices have already been sent and how much is left to invoice,” Auzins says. “I use that as the basis for scheduling invoices each month.”
