Improving Cash Flow In A Down Economy
Cash flow is always important to keep a business running. Frequently, there is a push for sales but not an equal emphasis on collection. Managing a business requires that Sales personnel are fully aware of non-collections.
As the economy declines, receivables take longer to collect and your suppliers demand their payments more quickly, Here is a financial health checklist to help your considerations:
- Time from Order to completion is timely
- Are Bills Generated Immediately upon completion
- Are Bills complete and accurate
- Do prices reflect costs and work performed
- Can part of the work be efficiently outsourced
- Bank loan terms are competitive
- Price and Terms are appropriate
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These items should be discussed with your tax and business attorney. If you have a question, call Ronald J. Cappuccio, J.D., LL.M. (Tax), at 856-665-2121 or send me an email through my secure website.