Keeping tabs on job-related expenses and what money is flowing in and out of your business may not be as exciting or rewarding as the work you do in the field, but failing to do both can lead to problems down the line.
Discover why tracking expenses and cash flow matters in your field service business – and how to improve both.
Why it’s important to keep track of job-related expenses and cash flow
Keeping a close eye on spending and cash flow helps you run a more successful field service business. With a clear view of expenses, you can reduce overspending by identifying wasted money and cutting costs. Real-time cash flow visibility shows you exactly how much revenue is coming in, so you can confidently cover expenses like wages, fuel and equipment, or take action to bring in the cash you need to pay bills.
How to improve expense tracking and cash flow management
Track spending with software
Filing receipts and capturing costs in spreadsheets may seem like a simple and smart way to track spending, but it’s all too easy for paperwork to go missing or mistakes to be made. Cloud-based software is a far more reliable way to manage expenses.
With software, you can add expenses to jobs on-site from your mobile device, saving you the time and hassle of capturing costs when you’re back in the office. With details stored in the cloud, you won’t have to worry about losing data or deleting spreadsheets. You can even upload photos of receipts to the system, meaning you never have to worry about losing proof of purchase.
Monitor cash flow daily or weekly
When you're not regularly checking your cash flow, it’s easy to lose sight of how much money is coming in and going out, and that can lead to overspending or surprise shortfalls. Relying on outdated reports or gut feel can result in you reacting too late to financial issues.
Monitor cash flow daily or weekly with accounting tools like Xero, Sage or QuickBooks. These tools come with real-time cash flow dashboards and forecasting tools that reduce guesswork and help you make smarter decisions when it comes to spending. You’ll know ahead of time if you’re at risk of running out of cash, so you can take action, like chasing invoices or delaying spending.
Automate invoicing
The sooner you send invoices, the sooner you’re likely to get paid. But manually creating and sending invoices takes time, and it’s easy for things to slip through the cracks. Late invoices delay payments, slow down cash flow and create admin as you chase up what’s owed.
Automation powered by invoice software makes invoicing a whole lot easier. Generate and send professional invoices in a few clicks, set up recurring billing for repeat clients, and schedule reminders for overdue payments. It not only saves you time, but helps you get paid faster and more consistently.
Set clear payment terms
Vague payment terms can lead to confusion, delayed payments and awkward conversations with clients. If customers don’t know when or how they’re expected to pay, you’re more likely to deal with cash flow issues in the near future.
Before you start work on projects, make sure customers know when payment is due, how to make payment, and what your late payment fees are. These terms will reduce misunderstandings and help you build long-lasting relationships that lead to more business and referrals.
Offer flexible payments
Timely payments keep cash flowing into your business, but if you offer limited ways to pay, your customers may put off making payments. When payment is inconvenient, it’s more likely to be delayed.
Reduce late payments and improve cash flow with flexible payment options. Customers like the flexibility of choosing their preferred payment methods, so offering more options makes it easier for them to pay you quickly. Using a job management system with built-in payment tools can speed things up even more. Once a job is done, you can send a payment link to the customer from your mobile device, or take card payments on site if the customer is ready to pay.
Need help managing expenses and cash flow? Eworks Manager can help
Eworks Manager simplifies expense tracking and invoicing, helping you cut unnecessary spending, improve profitability and keep cash flowing into your business.
To discover how our software can improve cost tracking and cash flow management for your field service business, book a demo with our team.
