Cash flow management is one of the most vital things for any business. Having a healthy cash flow can save you from going into a liquidity crisis. Small roofing businesses or independent roofers often find themselves in a pickle when managing their cash flows.
As a result, they become cash-strapped and find it challenging to run the core operations of their roofing business. However, businesses can now solve this problem through a cash flow management app for roofers. It helps you keep a check and balance on your inflows and outflows.
And if you think your roofing business does not need a cash flow management app, there are some reasons we will discuss in this article which tells why your roofing business needs one. First, we need to understand what cash flow management is and its importance for roofers.
What is Cash Flow Management?
The idea of cash flow management is to monitor the inflows and outflows of the money in your business. Cash flow management helps companies know about the amount of money for a particular period coming into the business and vice versa.
Using it, you can forecast the amount that your business will have in the future to cover for:
- Covering debt and interest payments
- Paying wages and salaries
- Making a payment to suppliers
The main idea of cash flow management is to ensure your business has enough money to continue the core operations. It helps avoid a liquidity crisis and gives you an idea to deal with the problems.
Back in the day, cash flow management was done manually by accountants and the finance team. However, rapid digitalization allows you many cash flow management apps for roofers. Let's go over some reasons why your business needs to get one.
Reasons for Roofers to Use an App for Cash Flow Management
As a roofer, you might want to keep an eye on your cash flow. However, lack of time is the main reason why many roofers cannot focus on it. Besides that, below are more reasons why your business needs an app for cash flow management.
Estimations and Projections
Calculating and doing estimations by yourself can take too much time, especially if you don't understand basic accounting concepts. However, with a cash flow management app, you can add all your fixed and variable expenses, and the app will do all the hard work for you.
Cash flow projections can help you know about the future cash inflows and outflows. You can find out them in advance and make relevant changes. For instance, if your business will experience lower inflows and higher outflows, you need to take a short-term loan or increase your cash reserves.
The main benefit of cash flow projection is that you can make decisions for the future of your business peacefully. Usually, roofing companies or solo roofers can track cash flow monthly to know about the next month.
Boost Cash Inflows
Cash inflows are important for your business since more money will ensure you don't fall into liquidity problems. Most importantly, it can help you build a cash reserve that you can use if your business is in a difficult financial position.
Also, you won't have to find a different line of credits that might have a high interest. Various cash flow management apps for roofers have the following features to enhance your cash inflows.
- Direct Invoicing
If you send invoices to clients late, it means that the clients will likely delay your payments. They can also use it as an excuse to avoid clearing your dues. It can impact your businesses' cash inflows. Therefore, you can use the direct invoicing feature in the app to send an invoice as soon as the project is complete.
- Bill Payments
Missing out on bill deadlines means your business will have to pay more late surcharges. It will ultimately increase the outflow. But with the bill management system in the app, you can pay bills on time and ensure there are no billing errors.
Keeps Information about Account Receivables
Even after sending invoices after the project ends, some clients might not clear their dues on time. And due to a heap of workload, you might not keep track of those account receivables. However, that is not the case anymore since you can manage all your accounts receivable through the cash flow management app for roofers.
Best Cash Flow Management App for Roofers
With so many apps available for cash flow management, you might wonder which one to choose. So, to make it easy for you, we have a list of the best cash flow management apps for roofers.
One of the best cash flow management apps for small roofing business is Quickbooks. It is easy to use and offers a complete set of management tools to handle your cash inflows and outflows. If you don't have a complex cash flow system, Quickbooks is the optimal choice for your roofing business.
Wave is a one-stop solution that can resolve all the accounting needs for your roofing business. It is a great app for independent contractors too. Wave allows you to create financial reports, keep records of expenses, send invoices, and gives complete control of your cash flow management.
Last but not least, DryRun is also a great app to help your business in cash flow management. You can use DryRun for bill payments, sync with other accounting apps or software your business is using, and check out other enticing range of features.
Use Vergo to Manage Your Roofing Business's Needs
Debit cards are not getting replaced with virtual cards since they offer plenty of benefits. So, now is the time for you to get VERGO and avail yourself of the fantastic benefits it offers.
You can use it for invoice management of your business and many other purposes. The application of this digital solution is to help businesses in the construction sector, including roofers.
Sign up to our newsletter