How to Improve Cash Flow in Your Cleaning Business
In any business, but especially in a small business, cash flow — money coming in and money going out — is important to the success of the business. Money going out is the easy part; there are always expenses: rent, supplies, equipment, salaries, etc. that you need to pay. But sometimes getting money to come in from your customers can be a slow and time-consuming process.
Most commercial cleaning businesses charge on a monthly, after the fact, basis. Special services such as carpet cleaning and window washing may be added on to the monthly bill or charged after completion. Residential cleaners often charge after each cleaning, which can be on a weekly, biweekly or once a month basis.
Customers may be slow to pay, which will adversely affect your cleaning business’ cash flow. It could mean that you might have to dig into your cash reserves to pay your bills. It may also mean that you have to spend time as a bill collector making phone calls or perhaps even sending out statements and collection notices to remind customers of past due bills. How do you get your customers to pay on time?
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