Create a Proper Billing Schedule
With One of the easiest ways to make money for your company in Dubai, or to increase cash flow, is to create a billing cycle that is quick and efficient. The person in charge of your accounts receivables needs to have a set schedule of when to bill a company for their services. You should also have this timed so that each week you are receiving a lump sum of money into your business bank account. This will instantly ensure that your cash flow, is in fact, flowing.
Quick books pro is a very popular brand of accounting software that can be used to keep track of money coming in and out of the business. Sage 50 (used to be Peach Tree) is also a very popular, if not the best accounting software to help you keep track and even mark when payments are due, or past due.There are also companies that may provide free software for business, or a reduced rate. This alone will help you save money.
Generate Long Term Clients
Your goal should always be to generate long term client relationships, as this increases cash flow. In Dubai we are lucky to have relationships with our clients that keep us close. But there is more we can do. With the long term clients the money is guaranteed to come in and it gives you something to expect and look forward to. If you notice that you have clients that have come in 3 or more times for your services, you should talk to them and make a deal. You can offer them services at a decreased amount of money, with a contract that keeps them with your company for at least 12 months. This type of business behavior will make your clients happy, as well as your bank account.
If you do not have the type of business that can offer a long term contract, you should try working with smaller contracts.
Purchase Office Supplies in Bulk
Another easy way to increase your cash flow and decrease overall expenses; buy in bulk! You should look to purchase supplies for your company on a monthly basis, or longer. If you set a schedule for when purchases will be made, you can save a lot of money. Any supplies that are needed on a daily basis should be bought in a grouped order. You can do this by having a recurring monthly list for paper, pens, printer ink and cartridges, light bulbs, and any other basic need that your company might have. If you need to purchase office furniture, or computers, it should be checked yearly. You should also keep your eye out for sales. If you know something is going bad, make sure to start searching for a good deal in advance! That is sure to keep your cash flow going.
Review Service Providers
As with any business, you must have regular phone service, cell phone service, internet services, repair services, computer maintenance services, and many other services to keep your day to day business going. You should evaluate these services on an annual basis. This is a major cash flow saver! Once a year, you need to sit down and look at all the services you pay for. Are they expensive? Do they meet your needs? Are you being overcharged? Do they offer any cheaper programs? Are there any services you pay for that you do not need? Looking over these things can have a small affect on your monthly expenditures and a profound affect on an annual basis. You could easily save over a thousand dirhams per year by switching from regular office phone services, to voice over IP services. This type of program would allow your internet to be your phone provider and save a ton of money. You’re already using the internet, so why not make the most of it?
Stop Spending on Things You Don’t Need
We just went over how to save on service providers, but are there other ways to cut costs? Yes! You can quickly generate more cash flow by spending less money on things that are not necessary. If you buy everyone lunch at your company more than once per month, you are wasting monthly.
While feeding your team can boost morale, it lowers your cash flow. Save the money from the weekly expense and only do it monthly; or have everyone pitch in for group meals. Earlier, we also talked about buying in bulk. This should be done carefully and concisely. Do not order more than what you will need. Keep track of how much you are using and spending. Make sure that everything adds up. If you have 10 extra packs of printer paper for the month, then you should purchase less the next month. Do not buy your bulk supplies without first checking your inventory. Every purchase you make should adhere to what your company’s actual needs are.
Invest Your Money
The final step to increasing your cash flow, is to invest your money. You can do this by having accounts with rewards programs. If you have a company credit card, treat it as an investment. The card should offer you cash back and regular bonuses for spending. The card should also only be used for business purposes. Your company bank account should also offer rewards and you should be earning interest off the money you keep in the account. These little steps can add up annually and account for a few hundred to over a thousand dollars of earned income, rather than costing you money. If your bank is charging you, then you need to look around for another bank. There may be a local bank that has better interest rates. I would also recommend that you lease vehicles at your company. Do not buy a new vehicle. It will automatically depreciate and you can’t write it off yearly.
Also, you should try only purchasing your building that your company works through if it is a great deal, or somewhere you will always be. You should rent the property or lease it and write it off annually. These are small investments can drastically help.
Utilize this List
This list can prove to save you thousands of dollars per year and keep a hefty cash flow in your business account. Take time to go over your company needs and check back to the list to make sure you are spending properly and getting proper rate of return on all of your investments.
In time, you will have enough money to be more than comfortable and stress free. Our goal is to keep the economy of the UAE growing and we can do that by following this list and making wise choices every day.