You’ve done your homework, your company knows its break-even point, you are elevating sales at the right price, effective marketing has been deployed, and your business is growing! This is great news and yet we often hear clients ask “do I need to worry, plan, or budget when my business is a success?”
YES! It’s important to estimate when you will receive incoming payments from your customers, and contrast that against the timing of your outflows for expenses such as payroll, credit card charges, rent, and vendors. With growth, negative cash flows often accelerate due to the time lag between receipts and costs.
Today, we are referencing two excellent articles, with great tips on how to speed up your cash receipts, successfully delay payments, and better anticipate potential shortfalls.
- 20 Ways to Improve Cash Flow in 2016, Ajeet Khurana, November 30, 2015, MasterCardBiz.com.
- How to Better Manage Your Cash Flow, Entrepreneur.com.
CFORuth highly recommends projecting your inflows and outflows for 2016, along with your budgeting process. Additionally, it is an excellent process to estimate a weekly cash flow for the coming quarter, often referred to as a 13-week projection. If your company uses Microsoft Excel, online templates are available to make this easier.
How can CFORuth & Associates assist you?
Contact Ruth and schedule a call to discuss whether your team may be leaving “cash” on the table.
CFORuth & Associates leads performance improvement and dynamic change initiatives. Working together, we can achieve more.