Cash Flow Improvement

Concerns:

• “I am the last to be paid even though we are profitable.”
• “Cash is always or periodically very tight.”

Solutions:

• Implement a rolling cash flow forecast.
• Ensure monthly or more frequent reviews of accounts receivable outstandings, with clear targets for average days outstanding and tactics for collection.
• Review other working capital, including inventory.
• Review the use of technology to improve and accelerate cash flow.
• Review payment structure to see if some goods/services can be sold on a prepaid basis.
• Review and implement financing options.