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3 ways to fix the cash flow problem for your contracting business
As contractor accountants in Manchester, one of the most common questions that we receive from our clients on a regular basis is: “Help! How can I fix my cash flow problems?”
The first thing you need to know is that you are not alone if you are struggling with your cash flow, whether you are new to accounting or a longtime limited company contractor.
That being said, there are a lot of strategies for success out there, and so there is always room for improvement – you can certainly increase your cash flow by following the example of the others who are having success in your field.
Here are our top three ways for you to kick start your cash flow and increase your business.
Raise your prices
This is our number one recommendation, and yet so many freelancers are afraid to try this. Trust us – as long as you are good at what you do (and you are!) you can afford to raise your rates.
Try increasing them at reasonable increments, and see what happens – if you do not experience a drop in business you know you are still charging what your clients are willing to pay.
If any long time clients complain, you can always blame it on your accountant (as in, “I don’t want to, but accountant insists!)– we don’t mind!
Work on retainer
Thiscan be a great way for you to increase your monthly cash flow while simultaneously guaranteeing that you save a set amount of time each month for your regular clients.
If you’re not sure how to start, let us know.
Take a deposit
You may trust your regular clients like family, but all it takes is for one client to fall on hard times for you to realise how much your billing system is vulnerable – an unpaid invoice can wreak havoc on your cash flow.
Take a deposit – or even the full total in advance – to ensure that you always get paid.
Contact us, so we can learn more about your contractor business. Together we can help you grow.