photo of man lying on top of money stack
It doesn’t make any difference what you think, a sale isn’t a sale until you collect the cash.   So, how do you make sure that you complete that sale?  Here are 6 critical steps to follow: Establish a Credit Policy – How do you know that they are able to pay you when your invoice is due? How large an order will you let them place? How soon will you expect payment? Get credit references, and don’t set a new standard. Proper invoicing – If the invoice isn’t correct, the payment will be delayed. Invoice the day you ship or
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illustration of vintage calculator, typewriter and abacus
Have you outgrown them? You have three financial systems operating in your company. You might not consider them all Financial Systems, but one cannot function without the other: Computer hardware Financial software Internal controls Computer Hardware –How old is your computer system? Is it cloud based or server based? Companies are comfortable with the structure that they have been using for the past 5 or even 10 years. But consider this: Outside threats – Not only hackers, but viruses and worms attack your system daily. Are you protecting yourself? Capacity – Do you have the storage and speed to process
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photo of just hands loaning money
One summer, a young girl set up a lemonade stand at the end of her driveway. After several weeks, she had done very well, selling an average of 20 glasses of lemonade per day. At $0.50 per glass, she had average daily sales of $10.00. Not bad at all! But she noticed that many people told her, “I’d love to buy some lemonade, but I don’t have any cash with me.” And they continued on, without buying any lemonade. Then one day she thought she might be able to sell more lemonade if she let these people have the lemonade
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photo with measuring tape and text to measure is to know
Each business is unique. This is especially true with small businesses, many of which have developed their own special processes or methods of doing things. However, there are some things that all businesses have in common. They all have something to sell with the intent of making a reasonable profit. They all need to purchase materials or inventory and convert them into their finished product, ready to sell at a competitive price. They need customers to purchase their products. They need to make payments to their vendors, send invoices and collect from their customers (because, don’t forget, a sale isn’t
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cash in pile with money flowing up and over to cash out pile
How Big is Your Gap? Like many professionals, I try to leave my work at the office to make my personal time with the family as free of work-related concerns as possible. However, one particular “business” topic that occasionally comes up, especially during the holidays, is our family’s “cash gap.” Basically, the cash gap is the number of days between when we spend money buying presents, and when I get paid next. You can see why this is important to me! And, just like in my home, an understanding of the cash gap is absolutely critical for your business as
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