Managing Your Cash Flow

Cash is king when it comes to the financial management of a growing company. The lag between the time you have to pay your suppliers and employees and the time you collect from your customers is the problem, and the solution is cash flow management.


1) Measuring Cash Flow

Prepare cash flow projections for next year, next quarter and, if you’re on shaky ground, next week. An accurate cash flow projection can alert you to trouble well before it strikes.


2) Improving Receivables

The idea is to improve the speed with which you turn materials and supplies into products, inventory into receivables, and receivables into cash.


3) Managing Payables 

When you are managing a growing company, you have to watch expenses carefully. Don’t be lulled into complacency by simply expanding sales.


4) Surviving Shortfalls 

The key to managing cash shortfall is to become aware of the problem as early and as accurately as possible. Banks are wary of borrowers who have to have money today. You can solve this problem by anticipating this issue months before it happen and take precautionary measures such as turning to your suppliers and discussing a better credit term.


CONTACT US NOW if you have such problems and wish for them to be resolved!

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