Optimizing your cash flow with proper accounts receivable managementWritten by Marc Eskew
Businesses miss on growth opportunities and even close their doors every day, not because they aren’t profitable enough, but because they are strangled by poor cash flow. The problem is that while their profit and loss statement shows success, their bank account cries poor. Excessive money tied up in delinquent receivables, bad checks, and bad debt write-offs, rob businesses of valuable cash flow, handcuffing their ability to grow or even stay in business at all.It doesn’t take long for a business to get caught up in a spiraling trend of increasingly late receivables, only needing a few additional delinquent accounts to start process. Most companies lack expertise and manpower needed to handle a spike in delinquent accounts. Soon, their staff is doing more work chasing late receivables, and they end up neglecting easier to collect, more current accounts. Eventually, a higher and higher percentage of accounts become delinquent and more and more accounts become uncollectible, forcing companies to employ expensive collection agencies to recover at least some of their money at a big loss or they write off debt completely. The end result is a loss in profitability and a serious strain on cash flow. There are some more obvious, common sense practices that companies can employee to maintain a healthy accounts receivable portfolio. A few examples include: 1. Perform a credit history check before extending credit. 2. Set and adhere to credit limits. 3. Establish your credit terms in writing on statements and invoices 4. Require all sales and money management staff to know and follow credit policies.
| | Business Opportunity - Essentials for SuccessWritten by Steven Harold
For any business to succeed if must have 3 basic components.1) Something to sell 2) People who want it 3) A way of letting those people know about it. (so that they will buy from you) There are easy and hard ways of getting going with a business. The easy way is... 1) Finding a service or product that already exists 2) Finding people (a market) that already have an awareness of product (or service) and who want it. The harder way is... 1) Creating a new product/service from scratch 2) Educating people about what this service/product will do for them 3) Creating a new market There are of course many factors for choosing easy or hard way of starting a business.
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