How to Improve Cash Flow: 4 Strategies to Consider
Managing cash flow can be a challenging task for any energy service provider. Sometimes cash is flowing out of the company faster than it is coming in. For the long-term success of the company, it is wise to focus on improving cash flow. There are many strategies an organization can put into place to do just that.
Cash flow is the net amount of cash that flows in and out of the business. A positive cash flow is when the company is adding to the company’s cash reserves while negative cash flow means vice versa. While having a negative cash flow is not necessarily a bad thing, it is very important to make sure to have adequate cash on hand to cover business expenses and other obligations. Keep in mind the trends of your business and the industry when evaluating your cash flow to get a full view of all changes to the bottom-line.
Businesses may be efficient in managing cash flow, but it’s still very important to constantly improve and build on good practices to ensure continued success. Here are four strategies to consider if you are looking to improve your cash flow.
- Efficient Field Service Management Software
Outdated field management software; lost job tickets and invoices; high DSO – these and other logistics issues quickly complicate the books. An inefficient field operations management software can negatively impact the cash flow of the company. It is very important to find a field service management software that understands you and your business and can help recover revenue- improving a company’s bottom line.
- Timely Invoice
It is very simple, the faster you get out an accurate invoice the faster you can get paid. Many times, tickets get lost or items get priced incorrectly. These types of issues cause delays in the invoicing process, hindering your ability to get the invoice out the door in a timely manner, causing payment delays. This ripple effect can have a significant impact on your company’s cash flow.
- Reduce operating cost
Companies have to manage money going out as much as they manage what is coming in. Reevaluating operational costs and determining if and how they can be reduced is key for improving cash flow. Streamlining the process to do more with less, while staying efficient is key.
- Analytics, analytics and more analytics
Analytics has become the building block of business strategy. However, many organizations struggle with having adequate data to be able to use it to their advantage. When this comes to improving cash flow, companies need strong visibility into the sources and use of their cash to help determine how each aspect of their business needs improvement.
FieldFX: The Empowering System
When organizations are looking to improve cash flow, it is very important to improve the field service process. Investing in field service management software like FieldFX empowers users to ditch the Excel sheets and paper processes in exchange for a system that digitizes, automates, and streamlines the quote-to-cash processes. FieldFX is able to deliver the four-way-match which is an accurate quote, producing an accurate ticket, generating an accurate invoice- with the price book serving as the common foundation. FieldFX’s four-way-match causes a domino effect ensuring your invoice is out faster and paid faster due to the increased accuracy.
Additionally, FieldFX provides visibility into information based on data that is being collected through the system from the quote, to the field ticket and beyond. This data empowers customers with powerful analytics that will give you full cash flow visibility. This added visibility will help determine costs that once were unclear and give companies the ability to see where improvements can be made within their process.
Investing in a powerful field operations management software, like FieldFX, can help you improve cash flow for your enterprise. Visit us here to schedule a demo and find out more.