Plenty of business owners overlook managing the cash flow in their shop, or keeping on top of money in and money out — which is in fact one of the things that decides whether a business succeeds. In this article we look at what cash flow involves and suggest ways to manage it well. New owner or old hand, keeping the business financially stable through cash flow management is essential to trading. An owner who understands and can control money in and money out can build a secure financial future.
So what is cash flow?
Cash flow is a basic concept that sums up the financial picture inside a business by identifying where money comes in and where it goes out. When a business has positive cash flow, income exceeds expenditure, which points to a healthy financial position. Positive cash flow tells you the company earns beyond its core operations — that it can meet its financial obligations, invest in growth and build a solid financial base. The money coming in covers the day-to-day costs: wages, buying stock, rent, equipment and everything else, while still leaving capital in reserve.
Three techniques for managing the cash flow in your shop and keeping the business steady
Here are three techniques that will help the business keep its cash flow steady, and how Qashier can help.
1. Prompt invoicing — collecting payment and issuing tax invoices on time
Issuing tax invoices promptly and accurately is important to keeping the cash flow steady, and the invoice you send the customer has to be correct and complete. If the business uses a management system or software that can issue tax invoices automatically, that takes work off your staff and prevents mistakes. Invoicing straight away encourages customers to pay on time, cuts the delay in getting paid, and improves the business’s cash flow.
Our POS system has an electronic tax invoice feature that supports cash flow management: the shop can send the customer an invoice before going ahead with the order. It lets the shop take payment in advance — a deposit, in effect — which puts money in the business before the other costs fall due. Taking payment up front improves cash flow, reduces the risk of late payment, shortens the invoicing process, and gives customers more ways to pay.
2. Managing the cash flow in your shop through efficient stock control:
Stock that will not sell ties up the business’s money and blocks the shop’s cash flow. You need to keep checking your stock for the items that are slow to shift or have already gone past their date. Develop a strategy to ease the burden — offer discounts, bundle items together, or run a selling campaign. Cutting excess stock and concentrating instead on what sells quickly frees up money and makes stock control more efficient, and both are good for the business’s cash flow.
Qashier’s POS system has stock management built in to help with cash flow, with real-time stock tracking and sales analysis. It helps the business decide when to bring more stock in and when to cut back, so the shop can be confident it is neither running out nor overstocked. Our system can also plan and forecast whether the stock you hold matches what customers actually want, which cuts costs and maximises your margin.
3. Track your expenses closely
Keeping track of the various costs of trading is a key part of holding the cash flow steady. Shops will usually summarise their expenses, look for the ones that can be cut, or find a cheaper alternative. You also need to negotiate good prices with suppliers, analyse your costs so you can plan when money comes in, and think carefully about where it goes. Sticking to a budget and finding good value when buying in quantity are part of the job too. Having a system to track and control expenses can therefore improve cash flow, and keep the business trading well.
Qashier’s QR ordering feature makes life easier for F&B businesses when it comes to taking orders, and reduces the labour needed to run the place. Customers can scan the QR code on the POS screen or on the menu and order straight away, so nobody has to sit writing orders down. It saves the shop the wages of extra staff, gets the most out of the resources you have, and improves cash flow by cutting your staffing costs.
Other Qashier POS features that keep the cash flow in your shop running smoothly:
Healthy cash flow makes it easier for a business to plan and decide, and helps it grow. With the money set aside properly and enough left over, the business can put that money into research and development, buy new equipment, and develop new products and services. It can even start opening up new markets or running campaigns to drive sales. Healthy cash flow also keeps the financial position stable, reduces the risk of debt, and makes the business less reliant on outside funding. On top of that, it gives the business confidence that it is profitable, that it can manage its resources efficiently, and that it has solid foundations to grow from.
Qashier’s smart POS system has further features that improve cash flow management: cashless payments and a customer loyalty programme. If a business offers several ways to pay, and cashless payment in particular, that reduces the risk of handling cash on the premises, protects its financial resources and improves cash flow as well. Using the customer loyalty programme in Qashier’s POS system helps retain customers and lifts sales and overall revenue. Both features strengthen cash flow and financial stability.
Specialists advise businesses to put strict measures in place to head off financial trouble such as a cash shortage, or to change how they take payment so that cash stays in the business. That is, in fact, another important strategy for keeping cash flow management healthy. Receiving funds in advance closes the gaps in the cash flow and gives the business confidence that it has enough capital to cover its costs and to build on new opportunities.
Do remember that these techniques are only a small starting point. Managing cash flow still takes attention and the willingness to put it into practice before you see results. Why not let Qashier’s smart POS system help you manage yours? Do not let time pass until other problems follow. Let our system look after your business — start now, and watch your finances change alongside Qashier.
About Qashier
If you run a shopfront business in Thailand and you are looking for smart POS technology, get in touch today to find out more about the plans and the package that suits your shop. Qashier comes in a range of forms that can be tailored to how you work, with the features you need and up-to-date technology: QR code ordering, table management for restaurants, customer membership management (CRM), discount management, staff management, scan-to-pay payments such as PromptPay QR, and a great deal more.
Qashier is also committed to service that puts the customer’s experience first, with an after-sales team on hand 7 days a week so your business keeps trading without interruption.
Try Qashier POS free today!
Or get in touch today to find out more about what Qashier can do for your business, see a free demonstration and get a special offer for your shop. Call us on 02-544-0267 or reach us on Line Official: @qashier.th