Effective cash flow management for home care businesses

Managing your home care business’ cash flow is vital to its success. Not only does it provide you with funds to run your day-to-day business, but it can also help you survive quiet periods. Your cash flow also impacts your future spending decisions and the direction your home care business may take.

Here are five ways to manage your home health care business revenue to help your business grow.

Track income and spending

Knowing how much money is coming in and going out of your business is the first step to managing cash flow. Tracking income and spending helps you budget effectively and identify potential revenue issues.

You might consider a homecare cash flow solution, like accounting software, to help you accurately track your cash flow. However, if you have the budget, you may consider hiring an accountant or bookkeeper to help with your books, follow up on invoices, and set a budget.

Find savings in your budget

Cutting your budget can also help you manage your non-medical homecare business cash flow. Finding savings allows you to free up cash for other areas of your business or create a savings buffer to help you weather lean times.

Home care businesses may be able to trim many budget items by:

• Buying some supplies, like personal protective equipment, in bulk
• Review phone, internet and utility contracts to ensure you’re getting the best deal
• Minimize energy costs by switching lights off during non-business hours and choosing energy-efficient equipment
• Negotiate lease discounts with your commercial landlord

Advertise for more clients

More clients mean more revenue for your home health care business. Advertising can be an effective way to help your business and bank account grow.

An effective advertising strategy will use different methods to attract potential customers. If your budget is tight, you may focus your efforts on social media to stretch your dollar. Targeting your ads to specific local areas may also be more effective than trying to reach your entire city or metro area.

Consider insurance

Nothing can disrupt cash flow more than unplanned expenses. Home health care insurance could be a useful home care cash flow solution for handling many risks that can quickly drain your bank accounts and even force your home care business.

Home health care insurance—shorthand for the many types of coverage available to home health businesses—helps protect your finances from costly claims and lawsuits. Depending on the policies you choose, your insurance can help you shoulder expenses like:

Third-party injuries and property damage – If a member of the public is injured or a patient’s belongings are damaged due to your actions, your General Liability insurance will help you set things right.

Negligence claims – An unhappy client or their family could bring a lawsuit against your home care business. Your Professional Liability insurance can help you cover your legal costs and compensation payments should you be found liable.

Unplanned interruptions – Some events—like fire or storm damage—can force you to temporarily close your home care business. Business Income coverage (an optional part of a Business Owner’s Policy) can help you handle disruptions to your income during these periods.

Workplace injuries and illnesses – Workers’ Compensation may be mandatory in your state, but if an employee is injured or contracts a serious illness on the job, you’ll be glad you’re covered!

Protect your home health care business revenue with BizInsure

Managing your non-medical homecare business’ cash flow can help it grow and thrive. It allows you to run your business with less stress, survive economic downturns, and make wiser business decisions.

Home health care insurance is one tool for cash flow management, and BizInsure can help you find coverage in minutes.

Compare policies from top-rated insurance partners, choose your coverage, and buy online or over the phone. In about 10 minutes, you can have instant coverage that fits your homecare business needs.

Get your free quotes today with BizInsure!