Streamline your business payments to save time and improve your cash flow predictability
Streamlining your business payments can both save you time and improve your cash flow predictability. Being able to predict your cash flow helps to improve your cash flow in general, which is also a recommended method of building your dental practice’s basic financial plan. There are a number of options you can use to streamline your payments:
Reduce your use of cheques. Cheques create cash flow problems because they make it hard to predict the balance of your bank account, and they can easily be replaced with technology. If you do require cheque payments, it is advisable that you work with your accountant or bank to use electronic cheques so that that your account balance is accurate. Your alternative plan of action could be to use an excel spreadsheet to track your cheques. We recently did a video on using technology to write cheques (click the link to watch it now).
Make as many payments via credit card as possible. Paying via credit card not only streamlines your process, it allows you to more easily review your transactions as well. Your credit card also gives you a 20 day grace period to make payments and the means to dispute charges if necessary. It’s important to note that you should not carry a balance on your credit card at any time because it the interest payments are higher, and you should regularly review your statement to ensure that only approved transactions show up.
Once you move your payments to your credit card and reduce your use of cheques you will have a much more accurate view of your cash flow, and easier predict your ability to make any upcoming payments.