3 Things to Consider About Cash Flow

Joseph Stafford Accounts Payable, Accounts Receivable, Business, Cash Flow, Expenses Leave a Comment

Most businesses will face cash flow challenges at some point in time. It could be brought about by a sudden spurt in growth or as a result of a downturn in economy. Regardless of what brings it about, there are certain actions that should be taken inside the organization before looking outside for additional capital. Here are 3 things to review before seeking outside funding. 1. Accounts Receivable – A review here should include a detailed look at how customers are paying within the terms that have been extended to them, a review of existing credit policies and procedures, and whether or not there are any receivables that can be accelerated under the proper conditions. Dell once owed my Company over $1mm and their terms were Net 90. We asked them to accelerate payment and they agreed! Crisis avoided. 2. Accounts Payable – Are vendors being paid in too timely a manner and is there any room to delay payments to vendors without harming the relationship? 3. Expenses – It should be a practice in any well run organization to review expenses on some frequency. But if things get tight, it might make sense to take a hard look at what is really necessary to run the business.

About the Author

Joseph Stafford

Mr. Stafford is a founder at Trinity Business Advisors and is responsible for product and practice development as well as sales and marketing activities for the firm. He is a graduate of California State University Fullerton with degrees in accounting and economics and a Certified Public Accountant in the state of California. He is an Expert in Residence at The Cove at UCI and at Connect/Springboard and is a Certified Mergers and Acquisition Adviser.

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