Cash Management Secrets

Proven cash management strategies that improve cash flow, collect past due money, and increases profits in tight credit markets.

Everything In Business Has Its Time

Be a good example for your staff by being on time. You may ask, "What does time management have to do with cash management?" You'll be surprised.

• Because collections are unpleasant, it's often done last -- Money owed to you is the easiest money to earn, because it's already owed. It's also the most expensive money because your company already provided a product or service.
• Delayed invoices are more likely to be questioned -- The longer an invoice is outstanding, the easier it is to ignore because no one remembers what work was actually done. Questions about invoices only delay your ability to collect monies owed.
• Paying your bills on time is just as important as getting your money -- When you pay your bills on time you demonstrate your expectation from customers. You also position yourself for increased credit and continuity should you ever hit a slow time.
• Cash flow changes daily, Interest compound monthly -- To stay on top of your accounts and make the most of your money, cash management needs to be a daily thing. Each day you don't have the money owed to you is a day you aren't growing as a business.

Your time management, persistence, keeps money flowing toward you, like a well-oiled machine. Solid time management translates into proper cash management.

Posted by Justin Hitt on November 21, 2006 6:22 PM | Permalink

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