InTents August/September 2020 - 39

the business can spend it. Put another
way, accelerating cash ϐlow allows
a business to pay its own bills and
obligations on time, or even earlier than
required. It may also allow the business
to take advantage of trade discounts
offered by suppliers.

Controlling outflow
Outϐlows are the movement of money
out of the business, usually as the
result of paying expenses. A tent rental
business's biggest outϐlow most likely
include the purchase of inventory and
equipment. Purchasing ϐixed assets,
paying back loans and paying bills are all
cash outϐlows.
Business owners can regain control
over their operation's ϐinances by
adopting best practices and proper
tools. A good ϐirst step involves how
the operation pays its bills. A key to
improving an operation's cash ϐlow can
be as simple as delaying all outϐlows
of cash as long as possible. Naturally,
the operation must meet its outϐlow
obligations on time, but delaying cash
outϐlows makes it possible to maximize
the beneϐits of each dollar in the
operation's own cash ϐlow.
Many credit cards have a cash back
bonus program. Even if the program
offers only 1 percent cash back, that
could equate to a sizable monthly
amount for many businesses. Of course,
because credit cards tend to have a
higher interest rate, they should only be
used if the balance can be quickly paid
off in full.

Improving invoicing
Improving the invoicing process
is another key step in cash ϐlow
management. A business can adopt
incentive strategies to be paid faster. A
business enjoying a 10 percent gross
margin that offers a 2 percent rebate in
exchange for early payments might not

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owner/president
Porcupine Canvas Manufacturing Ltd.

member since 2001

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InTents August/September 2020

Table of Contents for the Digital Edition of InTents August/September 2020

InTents August/September 2020 - Cover1
InTents August/September 2020 - Cover2
InTents August/September 2020 - 1
InTents August/September 2020 - 2
InTents August/September 2020 - 3
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