Keep an eye on your receivables.
Check customer credit histories because late or no payments slow down your cash flow and require collection costs.
Let your customers know the repayment terms, and offer a cash discount for early payment or cash payments.
Review an accounts receivable aging report frequently and follow up on past due amounts. The longer receivables remain outstanding, the lower the chances are that they will be collected.
Extend your timetable for making cash payments.
Pay bills on time, and take advantage of discounts offered.
Don’t pay bills earlier than they are due.
Improve inventory management.
Avoid excess inventory, which creates storage costs and cash outflow.
Eliminate obsolete inventory by marking it down and selling it! Obsolete inventory creates storage costs, and the longer it goes unsold, the less likely that it will sell.
Davis & Hodgdon Associates has been assisting businesses in the Burlington Vermont Metro area for more than 20 years. Our entrepreneurial advisory services include assistance with cash flow management. With the right tools and a dedication to using them you are armed for sustained success. Cash flow management is just one in a unique brand of services focused squarely on the needs of growing businesses. For more information please call 802.878.1963 or email [email protected].