Not having the cash on hand to continue operating is a nice and concise way to define business failure. Keeping abreast of cash flow is, naturally, an essential task, which can be tough without the right tools. Likewise, amid the busy daily grind of operating a business, the more crucial metric of profitability can easily fall by the wayside if owners are left to shoulder the weight of this administrative task alone. Luckily, the choice of accepting credit cards for your small business can help.
The simplest way is, unsurprisingly, the worst way: you eyeball it. This means more or less taking mental notes of how much is going in and out of the company. This inevitably produces the archetype of the penny-pinching owner, who holds off on buying basic necessities, like stationery.
On the other hand, if you generally know your profitability month-to month, in addition to your cash flow, you’re going to be set to make informed decisions. As in so many areas in life, knowledge dispels fear. If you’ve got a simple place to check cash flow against your projected profitability goals, you can go ahead—splurge on those staple refills, sponges, and any other purchase you were putting off for later.
Ok, so we want to monitor cash flow and profitability. Before, it was on the owner to crunch the numbers, and get information on cash flow, gross profit, net profit, and other insights into a business’s health. It was hard, time-consuming, and more often than not, downright depressing.
Upgrading to Moolah helps to change this. Making the leap to accepting credit cards for small business is the perfect opportunity to fully benefit from the payment data that is automatically tracked by the payment processing technology. A host of “back office” software systems make it so that you have instant access to these metrics. You’ll be able to clearly see your business’s profitability, in addition to managing your cash flow.
Speaking of cash flow, did you know that Moolah is a dedicated merchant account? This means your transactions are processed more quickly than with Square, one example of a processor who aggregates lots of transactions and processes them in bulk. What this means is if a dependable cash flow matters to your business, a merchant account like Moolah may be the way to go.
In summary, when crunching the numbers, don’t get cash flow and profitability mixed up. If seeing everything matters, get onboard with a merchant service that can hook you up with analytic bookkeeping information that makes it easy to track the health of your business, and if quick processing and dependable cash flow is important to you, then a dedicated merchant account like Moolah may be your best bet.