Cash Management Tips to Survive the Pandemic!

Cash is King!

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?

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7 Ways to Help Raise Capital!

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It’s unfortunate how many businesses fail in their very first year. No matter how good they may, they fail because they could not secure funding and raise capital for their business. 

A good cash flow is the heart of every business. No matter how much loss or profit you see, having a good cash flow can keep you running for a long time. 

However, securing capital for your business is not at all easy. That is why many business owners and entrepreneurs look for help in financing their projects

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5 Signs its Time to Upgrade Your Accounts Receivable System!

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.  

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Best Practices for Accounts Receivable and Accounts Payable!

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, including Accounts Receivable and Payable, 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. 

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Top Considerations in Credit Card Consolidation

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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. 

Here are the most important elements.

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The Preeminent Role of Supply Chain in Cash Cycle Management!

Cash is King! That much has always been, and will always be, a truism. The amount of cash you have will determine whether your business grows or declines and whether it lives or dies. So managing the time of the cash cycle is a mandatory business process.

Many people may have the view that Finance is solely, or predominantly, responsible for cash management. But the reality is that Supply Chain has a leading role in determining the cash position of any company.

Let’s explore what Time to Cash or the Cash Cycle is, what Supply Chain’s role is, and what actions you can take to ensure there is enough cash to keep your business afloat.

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The Supply Chain Detective™ and The Case of the Missing Cash!

We were tremendously excited!

We had just completed the acquisition of a company that had great, complementary technical capabilities, a broader geographic footprint, new customers, and accretive profitability.

The CFO and I took over day to day management of the acquired company.  A few weeks after the excitement of the acquisition had died down the CFO called me into his office.

“We are out of cash.  Next week we have to decide to either pay the employees or pay our suppliers.  We don’t have enough cash to do both.” How could we be missing cash?

We were in trouble.

What happened to the cash? How were we going to become solvent again and keep the business afloat for the long term?

It was another case for the Supply Chain Detective™!

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Should Your Business Apply for Factoring?

When you’re starting a business, there are a lot of important decisions to make. One of those decisions is how to finance your new venture. There are a number of different options available, and one of the most popular is business factoring.

Business factoring is a process where a business sells its accounts receivable (in other words, the money it’s owed by customers) to a third party for cash. This can be a great option for businesses that need capital quickly or don’t have the credit history to get a loan from a bank.

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