1. Tech Made Simple: Using Technology to Improve Your Cash Flow

2. e-Business Now Founding Partners

3. In this workshop, we will cover: Understanding how technology can help small businesses manage cash flow by: 1.Creating new types of cash flow 2.Accelerating cash inflow 3.Decelerating cash outflow 3

4. Understanding Cash Flow: The Holy Grail of Business 4 Business owners and managers who understand cash flow outperform their peers nearly every time. This presentation isn’t about understanding cash flow – it is expected you have some knowledge already. This presentation is about discussing new and effective technology tools to better manage cash flow.

5. 3 Ways Technology Can Improve Cash Flow 5 Creating new types of cash flow (and revenue) Accelerating cash inflow Decelerating cash outflow

6. Using Technology to Create New Types of Cash Flow 6

7. Creating Cash Flow: Viral Deal Sites 7 Viral “deal” sites get hundreds or thousands of customers to prepay for your product or service. Cash flow is created by prepayment. Groupon – 2 person sunset hot air balloon ride, regular price - $495, Groupon - $235. LivingSocial – Laser hair removal – regular price - $1,500, LivingSocial - $750. LivingSocial – Ski boat rental (summer) Regular price for 2 hours - $150.00, LivingSocial - $75.

8. Cash Flow Considerations With Viral Deal Sites Make sure you have enough profit in product or service to cover “break-even” costs. Accounting implications: Book the prepayment as a liability until you provide the service or product. Make sure you hold back enough cash to service all of the unfulfilled contracts. 8

9. Creating Cash Flow: Remote Credit Card Payments 9 Accept “swiped” credit card payments remotely Inexpensive solution for remote workers Add-on sales much easier with credit card transaction

10. Where Remote Credit Card Payments Can Be Used Here are some ideas for places companies can use remote credit card payments to generate additional cash flow. B2B companies: Trade shows Industry conferences or events Networking groups At client’s location B2C companies:  Crafts fairs, art shows, community events  At customer’s home - plumbers or handymen  Mobile businesses 10

11. Many small businesses still do not have a website. Even those that do often lack ecommerce capabilities to sell their products or services. If you have retail brick and mortar stores, you can greatly boost cash flow by having an ecommerce website that allows for immediate sales to a wider geographic area. A service business can sell gift cards or certificates online. 11 Creating Cash Flow: Ecommerce Site

12. Review: Creating Cash Flow 12 Group Discussion: How can the tools discussed be used to create new types of cash flow?

13. Accelerating Cash Inflow 13

14. Accelerating Cash Inflow: Accounting Software If you are not already using accounting software, doing so is one of the easiest steps you can take to accelerate cash inflow. You can choose software specialized for your industry Software can coordinate with your CPA, payroll service and other ancillary services Automate invoicing so you receive payment faster Stay on top of receivables

15. Accelerating Cash Inflow: Dashboards & More Many of the most popular accounting programs being used today have sophisticated technology tools built into them. These can include dashboards, online bill presentment, ACH features, and other types of technology we will discuss today. 15

16. Accelerating Cash Inflow: Dashboards Use dashboards to monitor: – Days of sales outstanding – Largest customers by volume – Accounts with balances over 75 days past due – Other high-risk or problem accounts – Days of inventory 16

17. The U.S. Federal Reserve Bank now allows a standard “scanned” image of the front and back of a check that is used throughout the federal banking system. Banks now offer scanning hardware and software either free or at a low cost to business banking customers. 17 Accelerating Cash Inflow: Check Capture Remote capture can shave 2-3 days off the average check collection time of a check. Photo Credit: Canon USA

18. ACH stands for “automated clearing house” and is the check clearing system for the U.S. ACH debit transactions are computer-originated transactions that debit funds out of another party’s checking account and move them to yours. 18 Accelerating Cash Inflow: ACH Debit ACH transactions usually take 2 banking days to complete.

19. Accelerating Cash Inflow: ACH Debit ACH can be used for: Recurring periodic payments (like gym memberships) One-time collections COD deliveries Down payments on large orders Cash flow benefits include: receiving immediate credit for a deposit Infinite record of transaction Creates a sense of sophistication for your business since it primarily large companies use it. 19

20. Accelerating Cash Inflow: Electronic Bill Presentment 20 Electronic bill presentment has been slow to catch on in the B2B world, but is being used often in the B2C world.

21. Accelerating Cash Inflow: Electronic Bill Presentment In the business-to-consumer world, electronic bill presentment and payment is known as (EBPP). In the business-to-business world, it is known as electronic invoice presentment and payment (EIPP). Both types of systems work in a similar fashion. 21

22. Traditional B2B companies have not used credit cards in the collection process, but there is a place for them Some business customers may be able to make a full or partial payment against an account if you accept credit card payments Because of market pressure, the cost and amount of work to become set up to accept credit cards has dramatically decreased. 22 Accelerating Cash Inflow: Credit Cards

23. There are several new payment options on the market that are competing against traditional credit card vendors. Amazon Payments and PayPal are two big alternative players. These options to traditional credit card processing are appealing because they are easy to set up, easy to use, and the fees are predictable. 23 Accelerating Cash Inflow: Other Options

24. Review: Accelerating Cash Inflow 24 Group Discussion: How can the tools discussed be used to accelerate cash inflow?

25. Decelerating Cash Outflow 25

26. Decelerating Cash Outflow: Accounting Software Today’s accounting software allows you to handle accounts payable (cash out-flows) in a simple yet powerful way. Payables are entered as received – Date of service (invoice) – Date of payment due When checks are ready to print, you print for a particular date range. You don’t have to produce check and mail it before it is due. 26

27. You can effectively stretch out a 30 day A/P item to 55 days by paying for the purchase at the 30 th day by credit card 25 days later you pay your credit card bill Effective if: – No additional cost for paying by credit card – You pay off credit card in full each month 27 Decelerating Cash Outflow: Credit Cards

28. Great for employee payroll if you don’t use an employee payroll service Works well with critical vendors when you want them to feel well taken care of by your payables department, but don’t want the cost of wire transfers 28 Decelerating Cash Outflow: ACH Credit

29. Review: Decelerating Cash Outflow Group Discussion: How can the tools discussed be used to decelerate cash outflow? 29

30. Module in Review 30

31. Next Steps How-To Guides Connect with a SCORE Mentor SCORE has over 13,000 successful and experienced executives with small business know-how that want to help you Visit www.e-businessnow.org for more informationwww.e-businessnow.org Take the Share Your Feedback survey

32. Tech Made Simple: Using Technology to Improve Your Cash Flow