Collect Accounts Receivable
Sales
Operating Expenses
Purchases
Cash
More ways to invest in your business
Cash
Early in the cycle, cash flows out as you purchase goods and services to create your own products and services.
Purchases
Now, cash begins to flow in your favor.
Sales
Accounts Receivable
Collect Accounts Receivable
The Cash Flow Cycle
Start your journey, and find tips and tools to make cash work harder for your business.
Find out More
If you’re looking for financing, good liquidity management may put you in a stronger position to get funding.
LIQUIDITY MANAGEMENT
Pay Accounts Payable
Interactive Tips & Tools to Help Grow Your Business
A
Cycle
TIPS FOR LIQUIDITY MANAGEMENT
Tools to help
Liquidity Management
Talk to a Banker
If your business is struggling, ask suppliers for support. Some larger companies help out long-term and trusted business customers during economic downturns.
ACCOUNTS PAYABLE
If you’re a startup, be diligent with collections:
ACCOUNTS RECEIVABLE
Offer discounts for early payment
If your business is tight on cash, offer customers discounts for early payment or require partial payment upfront.
Digital payment options
Make it simple for customers to pay by providing multiple payment options, such as
More cash means:
Opportunities to earn interest on spare cash
Less stress paying bills
Guide
to
the
flow
The cash flow cycle starts and ends with cash.
Earning interest on extra cash
Maintaining easy access to cash to pay bills
Pooling cash from linked accounts
Managing your liquidity includes:
Liquidity Management
And, the never-ending cash flow cycle can begin again.
Collecting accounts receivable is basic to speeding up your cash flow cycle.
This puts money back in your hands so you can grow your business.
You may be able to negotiate longer terms based on your relationship with a supplier
You may be able to get a discount by paying early
Pay Accounts Payable
You usually pay accounts payable 30 days after you get an invoice. But:
Advertising
Utilities
Salaries
Operating expenses are ongoing, such as:
Operating Expenses
Rent
Some operating expenses come early in the cycle—when you may be flush with cash—and others come later, when cash might be tight.
The faster you collect, the sooner you get cash to grow your business.
These amounts owed are accounts receivable.
Some customers pay cash, but some may take time to pay because they’re managing their own cash flow.
Tools to help
TIPS FOR ACCOUNTS RECEIVABLE
Tools to help
TIPS FOR ACCOUNTS PAYABLE
These amounts owed are accounts payable.
Rather than deplete cash by paying suppliers upfront, many businesses buy on credit—30, 45, or, even, 60 days.
Accounts Payable
MODERN
A faster cash flow cycle means more cash to grow your business.
This is your business’s cash flow cycle.
How fast does your business turn cash into a product and then collect cash from sales?
Forecast 12 months worth of sales and expenses so you can see and plan for the ups and downs of cash flow.
If you build up cash, make sure it’s in an interest-bearing account, or consider paying down debt, or invest in your business.
Know how much cash you have, so you can plan both for growth and for slowdowns.
If you are flush with cash, ask suppliers for discounts for early payment.
If your business is established and growing, seek longer payment terms and early payment discounts from suppliers.
If you are a startup, focus on paying invoices on time. Building trust with suppliers may help your business in the long term.
Accounts Payable
Accounts Receivable
Cash
If you cannot get a deposit before beginning work, then negotiate full payment on delivery.
Send payment reminders
Send invoices immediately
Credit cards
ACH
09_Collect Accounts Receivable
08_Accounts Receivable
07_Sales
06_Pay Accounts Payable
05_Accounts Payable
04_Operating Expenses
03_Purchases
02_Liquidity Management
01_Cash
00_Intro
Tools to help
Tools to help
TIPS FOR LIQUIDITY MANAGEMENT
TIPS FOR ACCOUNTS PAYABLE
LET'S CONNECT
BACK TO INTRO
TIPS FOR LIQUIDITY MANAGEMENT
TIPS
TIPS
Talk to a Banker
Talk to a Banker
Talk to a Banker
Talk to a Banker
Talk to a Banker
Collect Accounts Payable
Accounts Receivable
Sales
Operating Expenses
Purchases
Cash
More ways to invest in your business
Cash
Early in the cycle cash flows out as you purchase goods and services to create your own products or service.
Purchases
Now, cash begins to flow in your favor
Sales
Accounts Receivable
Collect Accounts Payable
The Cash Flow Cycle
A faster cash flow cycle means more cash to grow your business
How fast does your business turn cash into a product and then collect cash from sales?
This is your business’s cash flow cycle
Start your journey, and find tips and tools to make cash work harder for your business
Find out More
Forecast 12 months worth of sales and expenses so you can see and plan for the ups and downs of cash flow
Know how much cash you have, so you can plan both for growth and for slowdowns
If you build up cash, make sure it’s in an interest-bearing account, or consider paying down debt, or invest in your business
If you’re looking for financing, good liquidity management may put you in a stronger position to get funding
LIQUIDITY MANAGEMENT
BACK TO INTRO
Pay Accounts Payable
Accounts Payable
Interactive Tips & Tools to Help Grow Your Business
A
Cycle
GUIDE
TIPS FOR LIQUIDITY MANAGEMENT
Tools to help
Liquidity Management
Let’s Connect
Let’s Connect
If you are a startup, focus on paying invoices on time. Building trust with suppliers may help your business in the long term
If your business is established and growing, seek longer payment terms and early payment discounts from suppliers
If you are flush with cash, ask suppliers for discounts for early payment
If your business is struggling, ask suppliers for support. Some larger companies help out long-term and trusted business customers during economic downturns
ACCOUNTS PAYABLE
Let’s Connect
If you’re a startup, be diligent with collections:
ACCOUNTS RECEIVABLE
Send invoices immediately
Send payment reminders
Offer discounts for early payment
If your business is tight on cash, offer customers discounts for early payment or require partial payment upfront
If you cannot get a deposit before beginning work, then negotiate full payment on delivery
ACH
Credit cards
Digital payment options
Make it simple for customers to pay by providing multiple payment options, such as
More cash means:
Opportunities to earn interest on spare cash
Less stress paying bills
A Modern Guide to the Cash Flow Cycle
Modern
to
the
Cashflow
The cash flow cycle starts and ends with cash
Earning interest on extra cash
Maintaining easy access to cash to pay bills
Pooling cash from linked accounts
Managing your liquidity includes:
Liquidity Management
And, the never-ending the cashflow cycle can begin again
Collecting accounts payable is basic to speeding up your cash flow cycle
This puts money back in your hands so you can grow your business
You may be able to negotiate longer terms based on your relationship with a supplier
You may be able to get a discount by paying early
Pay Accounts Payable
You usually pay accounts payable 30 days after you get an invoice. But:
Advertising
Utilities
Salaries
Operating expenses are ongoing, such as:
Operating Expenses
Rent
Some operating expenses come early in the cycle--when you may be flush with cash—and others come later, when cash might be tight.
The faster you collect, the sooner you get cash to grow your business
These amounts owed are accounts receivable
Some customers pay cash, but some may take time to pay because they’re managing their own cash flow
Tools to help
TIPS FOR ACCOUNTS RECEIVABLE
Tools to help
TIPS FOR ACCOUNTS PAYABLE
These amounts owed are accounts payable.
Rather than deplete cash by paying suppliers upfront, many businesses buy on credit—30, 45, or, even, 60 days.
Accounts Payable