Creating Cash Flow

Every company struggles with the pressures of maintaining their cash flow. With

proper governance and organization, companies should be able to easily ensure the

management of their financial house.

Review your accounts receivable on a regular basis: Many business owners do not

have the necessary training to understand the accounting side of their

enterprise completely. Poor credit management is the top reason that businesses fail, so it is

important to either learn the lingo or invest in a trusted accountant.

Develop a credit policy: Business owners (especially new business owners) can be so

eager for a sale that they either forget to, or are too timid to review payment terms with

a new client. The more up-front you are about your payment terms, the less likely a

misunderstanding or delay in payment will occur.

Invest in your staff: Acquire the correct training to educate your staff. The more time

you invest in your staff, the more results you will see.

Constant Contact: Persistence equals payment. You must keep customers aware that

their debt is still outstanding and the payment is necessary. If you are not in constant

contact the debt may be forgotten or viewed as less important.

Use your resources: Don’t be afraid to out-source your accounts receivable. Not every

company has a designated person to handle this aspect of the business. Make sure that

you use a company with specifically trained and certified employees.