Accounts Receivable article and permission to publish here provided by Nathan Miller at tesorio.com.
Many companies hesitate to upgrade or change their Accounts Receivable System simply because they feel they can continue to achieve the same results using the same systems and processes as they did five years ago.
If you are a smaller company just looking to send a few automated dunning letters and have your AR team identify which invoices are past due, there may be no reason to change.
But if your company wants to improve free cash flow and cash conversion cycles, you must be sure your AR system is driving efficiencies in your processes – if you hope to grow without spending significant dollars on headcount.
Accounts Receivable and Payable article originally published by, and permission to publish here provided by, Nathan Miller at tesorio.com.
Cash flow is the number one reason why most businesses fail: 82% of small businesses go under due to poor cash flow. This challenge isn’t limited to small businesses, either. Just this year, KPMG found a discrepancy in accounting at Meredith Corp., one of the biggest media conglomerates in the country.
“KPMG uncovered shortfalls in oversight of the processes used to calculate the fair value of Time Inc.’s accounts receivable and accounts payable, which were brought across to Meredith’s books when it purchased Time on January 31, 2018,” reported the Wall Street Journal.
Accounts receivable and accounts payable are critical aspects of a business’s financial health. Understanding how these two accounting functions impact your cash flow and overall growth can mean the difference between another year of healthy profit – and becoming another statistic.
Here’s what you need to know about optimizing the processes of accounts receivable and accounts payable.
Credit card consolidation article and permission to publish here provided by William Rovetto.
You’ve seen a lot of mixed messaging if you’ve been reading up on credit card consolidation as a way to get your debt under control. Some sources say consolidation is absolutely the way to go. Others say avoid it at all costs. Still others say certain types of consolidations are good, while others are bad.
Fortunately though, reading between the lines will help you find the main things to look for in a credit card consolidation to ensure it works for you.
If you didn’t realize that before the pandemic, in either your personal lives or at your company, more people certainly understand this adage now. Cash is King!
Without cash you cannot run your household and you cannot keep your business open.
The pandemic has made this a very real concern for everyone. Businesses are locked down so they are not able to generate the revenue to pay their expenses. As such many businesses have laid off employees, even if temporarily, to cut their expenses. And a record number of people have lost their jobs, even if temporarily, and as such they can’t even pay their bills.
Despite the numerous government support packages businesses, as well as individuals, need help on how to aggressively manage their cash flow just to survive this pandemic.
What are some cash management tips to help businesses manage their cash flow at this critical time?