Naturally, consistent cash flow is paramount for any small businesses simply looking to stay afloat. Having said that, with how frequently all the latest trends in cash flow management tend to change it can be particularly difficult trying to keep up with them on your own. 

So, we’ve put together a list of some of the key trends you need to be following in order to remain competitive and ultimately ensure long-term success. 

  1. Digital Payments Adoption

Firstly, we have the increase of digital payments as an alternative to cash – these offer much faster transaction times for customers and can improve your cash flow management, too. This is a trend that’s ultimately been driven by consumer preferences for contactless payments and because of how convenient mobile wallets are.

Integrating digital payment solutions in your business can be highly useful for reducing the waiting period for funds – as a result, you’ll be able to manage your finances far more efficiently.

  1. Subscription Based Models

Depending on your particular industry, utilising subscription-based business models can be a solid way of providing steady and predictable cash flow. This essentially allows you to benefit from regular income, so this assists when it comes to financial planning and stability during slightly quieter periods.

  1. Increased Access to Alternative Financing

Rather than exploring traditional bank loans that can be awkward for small businesses to secure (not to mention handle the stringent requirements), alternative financing methods such as peer-to-peer lending and invoice financing are becoming more and more popular.

This can be particularly handy for any companies that need immediate cash in order to cover some of their operational costs since you don’t have to experience the length approval processes that come with conventional loans.

  1. Enhanced Financial Technology Solutions

Also known as fintech, financial technology is a key tool to be taking advantage of for any size business. Small businesses, in particular, though, should be utilising these tools for their cash flow management tools in order to gain a better understanding of your financial health and spending patterns. This includes tools like:

  • Automated accounting/bookkeeping software
  • Real-time cash flow tracking apps
  • Integrated financial dashboards
  1. Focus on Cash Flow Forecasting

Following on from the previous point, some of these tools can be used to model various different scenarios your business might undertake so that you’re able to become better prepared for certain challenges.

This way, you’ll be able to adjust your current business strategies so that you can respond to any cash flow issues you anticipate further down the line – ensuring you’ve got the liquidity you need to cover certain expenses and grow.

Partner With Advisory One

From accounting to business advisory services, our team of bookkeepers and chartered accountants here at Advisory One can help you elevate your company’s financial success. For more information, don’t hesitate to get in touch with our team today!