Control business finances with a thorough record keeping and organizing financial statements. Here is a good cash flow tip from the book Starting Your Business.
Author Peter Hingston writes:
"keep receipts and invoices for everything you buy in connection with your business . . . the purpose of keeping invoices is so that you have proof of purchase and can justify all your expenses to your accountant and any IRS agent.
"Write the last three digits of the check number boldly in red ink on an outside corner of the invoice so that it can be easily cross-referred to your check book and financial statements."
Separate invoices in to paid and unpaid statements.
For most small businesses, hiring a bookkeeper as an independent contractor is a wise use of cash flow. For companies with fewer than 15 employees, most bookkeepers may only need to work on a system for 5 to 7 hours per week to maintain it.
Also read Reduce bills to increase cash flow.
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