The advent of digitization has somewhat supplanted cash payment. However, cash circulation continues to increase in volume. Therefore, the focus of a business should be to have a defined cash flow management plan with key deliverables defined and leverage a payment system for online transactions.

Dos – How to Manage Cash Flow Better

Let’s explore a few steps that you can take to improve cash flow management,

• Creating a plan and sticking to it 

Study your cash flow to identify patterns to help you design a cash flow plan, i.e., when and how much cash flows in and out. Once formulated, you should stick to the plan – from sales order to customer payment recovery and from purchase order to payments.

• Have a financial schedule/calendar

Having a financial calendar can help execute a cash flow plan. The payment time can be scheduled, while accrual reminders can be sent on time. Subscriptions, monthly dues, and bills can also be scheduled so that you don’t face any late payment charges unnecessarily.

• Take advantage of technology 

The use of technology can help you avoid the usual perils of cash flow management. Accounting software can make a difference in your cash flow management for record-keeping and other operational assistance. Along with this, you can opt for PayU Priority Settlements for cash flow management. By integrating the PayU Priority Settlements, you get greater cash flow control, an auto-reconciliation feature, and flexible and instant payment settlements without hassle.

• Following up 

Following the financial calendar and not following up on payments may lead to defaults and delays in cash flow. Moreover, it is not just the payments recovery that needs a follow-up. You can also use a payment system to guide customers on terms of payments, due dates, etc. 

Don’ts – Things To Avoid In Cash Flow Management

Here are a few things to avoid to manage cash flow better:

• Not raising invoices on time 

Customers often pay invoices as per the credit period. Any delay in raising the invoice can lead to a subsequent delay in payment release, thus disrupting the cash inflow.

An invoice should be raised after fulfilling the agreed milestone(s). And once you raise the invoice, you can ensure that the customer gets all payment mode options with PayU, be it Credit Cards, Debit Cards, Net Banking, EMIs, BNPL, QR, UPI, or Wallets. 

• No emergency fund 

Contingencies can occur at any time, and businesses go through lean phases now and then. A portion of the business payments received should be set aside for emergencies to ensure that you can make a cash or banking payment even when business is slow.

• Not delegating 

A well-run business always deploys dedicated personnel in key positions. With various operating, investing, and financial activities like raising invoices, customer communication, recovery, liquidity investment, processing payment orders, etc., delegation within the business can ensure each sub-processes functions smoothly and with synergy.

• Not communicating 

The various functions within the business should be in constant communication regarding the cash flow position. Expected delays in receipts, potential cash crunch impacting business payments, and budget vs. actual comparisons are some of the things that should be discussed and communicated among relevant stakeholders to avoid misunderstandings or delays. 

While you follow the aforementioned tips to manage your cash flow better but there’s another way to manage it easily without facing the daily cash crunch. Yes, with PayU Priority Settlements, it is easy to keep the cash flow going & accelerate growth at every step.

Conclusion

In today’s digital age, payment and settlement systems have streamlined cash flow management for small and medium enterprises and even large e-commerce marketplaces. Besides, with smart checkout solutions and no-code solutions, PayU further diversifies the options you can have to accept payments. Similarly, payment disbursals are made easy by PayU with automated customer, vendor and aggregator payment solutions. Thus, when it comes to payments as a service and other cash management solutions, an association with PayU can make your business operations and cash flow hassle-free for your customers and your team. 

Also read: How To Boost Your Cash Flow

Frequently Asked Questions

The post 8 Dos And Don’ts For Better Cash Flow Management appeared first on PayU Blog.

What is Priority Settlements?

Priority Settlements is a PayU product that solves the cash flow problems of your business. Get your online customer payments instantly & run your business 24×7.

Why Do You Need It?

As the payment settlement process takes time, it’s difficult to receive your online collections instantly. Here are a few problems that PayU Priority Settlement mainly solves for your business while reducing the payment settlement time:

• Making timely payments
• Needing cashflow to meet capital expenses
• Providing instant refunds to your customers

How Does it Work?

Once a customer pays you, the money is deducted from their account instantly. Money moves from your customer’s bank to your bank via the payment gateway. With PayU Priority Settlements, these customer payments come to your bank account in just 15 minutes.

Know more about priority settlements in this video.

The post Boost Cash Flow for Your Business with Priority Settlements by PayU! appeared first on PayU Blog.

Therefore, you have enough money in your bank account that can be utilised to manage your daily activities, amend your marketing strategies and leverage new opportunities to reach out to customers, faster and conveniently.

Read on to know more about why it is a must to have PayU’s Same Day Settlement feature enabled for your business.

Re-invest More with the Improved Cash Flow

As mentioned above, PayU’s Same Day Settlement feature will help you improve your cash flow and thus help you in managing your working capital effectively. It will ensure your peace of mind that the money you have earned is already in your bank account and available for expenses and investing more.

An agile way of working will help you grow your business manifold and create a strong brand image in front of customers.

Be More Productive

After partnering with PayU, you will be able to settle your accounts faster with the vendors and spend less time tracking pending payments. You can track all your transactions on the PayUmoney dashboard, even when you are on the go.

This will help you devote more time to understanding your customers and their needs, implement them and expand your business.

Need Not Rely on External Credits

With the Same Day Settlement feature, you don’t have to take a costly loan and worry about repayment issues. A regular inflow of cash will help you in budgeting and managing your business better and meet your day-to-day cash demands.

How to Enable PayU Same Day Settlements

You can start receiving same-day settlements by simply getting in touch with your Relationship Manager and signing the agreement or by reaching out to us here.

We understand that healthy cash flow is essential to run the business smoothly and with ease. That’s why now don’t keep waiting for your hard-earned money for days. PayU Same day Settlements feature is the quickest, most convenient and a great way to be prepared for your business’s cash demands.

Sign up for our Same Day Settlements feature and grow your business just like our 4.5 lakh + online businesses do! PayU is India’s leading payment solution provider. And we are always excited to empower our users with all these consistent enhancements and feature updates!

The post Enable Same Day Settlements to Boost Your Cash Flow appeared first on PayU Blog.