In a Tight Economy - Cash is King
Cash is King! In a turbulent economy, your business needs cash to pay
its bills. Cash is needed to implement growth plans and take
advantage of business opportunities.Here are some steps to maintain
your company's liquidity:
if your company is profitable. Get your bookkeeping and
financial planning systems in shape so you immediately know the
financial status of your business.
your company is not profitable, change what you are doing.
Having good financial information is worthless if you do not use the
information to correct problems and improve the business profitability
Unnecessary Assets. Are you wasting assets in land,
fixtures and unnecessary assets instead of focusing assets on those
needed for your core business?
Deposits. Get deposits and retainers from customers at the
beginning when it is easiest rather than chasing after
customers for payment.
Accounts Receivable. Don't let customers get ahead of you.
In times of economic uncertainty, your customer's bankruptcy and
business collapse could cause your business to fail.
Credit. Find out your customer's credit standing. If their
credit is challenged, get a larger deposit and consider C.O.D.
longer payment terms with suppliers. If your suppliers
will wait longer, you need less cash and credit lines to grow your
Overhead. Reduce overhead costs such as rent, utilities,
auto, transportation, office supplies and equipment and unnecessary staff.
- Take advantage of Discounts. Advance
payment, quantity discounts, avoiding last minute travel tickets, can
Ronald J. Cappuccio, J.D.,
1800 Chapel Avenue West, Suite 128
Cherry Hill, NJ 08002 USA
Phone (856) 665-2121
Fax (856) 665-9005
J. Cappuccio, J.D., LL.M.(Tax) All Rights Reserved