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Cash Flow Improvement

The greatest concern of any business owner is having enough money to cover their bills and payroll. Those are basic to any business, and you will put together a plan so that the timing of your receipts and payments result in a positive cash flow. But, sometimes the numbers don’t work. Sometimes, you have expenses that you hadn’t planned on. Sometimes your customers weren’t as prompt in paying as you expected them to be. Sometimes they get caught by the cash flow crunch as well. When it comes right down to executing that plan, there may be things that you need to change, adjustments that you need to make to bring more available cash to your company.

This is where an experienced CFO can be a critical member of your team. The managing of cash is a balancing act that takes into account many factors. Some of them are the result of long term planning decisions – leasing versus purchasing, monthly payments versus annual payments. Some of them are the result of short term planning – granting discounts for early payment by your customers, taking discounts for early payment to your suppliers. Some are decisions that you make based on your current operations – deposits you require of your customers, or deposits your suppliers insist you have to pay. These can be tender and risky negotiations with people that are critical to your business.

The difficulty is assuring that you can balance that cash by pulling on the receivables side and pushing on the payables side without upsetting the confidence that your suppliers, customers and employees have in your ability to function. Let’s be clear, it isn’t easy. Your reputation is the most important thing that you have to sell, and negotiating at a time like this needs to be done by someone experienced, someone who has seen it all before, someone that isn’t personally involved. Someone who can balance your needs with the demands of your business.

The skilled executives at CFO Simplified are ready to work with you to improve your Cash Flow, making your daily planning less stressful, and assuring that you have the cash you need, when you need it to operate your business.