Money is coming into your business, and it's covering your bills, but do you really know how healthy your bottom line is? Analyzing cash flow and the financial processes that contribute to it are the keys to determining whether your business is on track or heading for a cash crisis.
Invoicing, getting paid promptly, and keeping costs down all affect your cash flow. Analyzing your business with these things in mind will help you maximize cash flow and ward off any catastrophes.
- The Cash-flow Crunch
- Big firms are dragging their feet on payables, taking as long as 60 days to settle up, and creating new problems for entrepreneurs.
- Closing the Books
- It's time to settle accounts for 2004 -- and prepare for a fruitful 2005. Here are three ways to get the most out of the annual end-of-the-year bookkeeping scram.
- Case Study: Give Credit to the Small-Business Owner
- Nick Ypsilantis, CEO of AccuFile, routinely checks in with customers to track incoming payments and reviews a weekly cash-flow statement to ensure that cash keeps flowing into his business.
- Cough It Up!
- Take the time to outline payment terms before a project starts. It will help establish a professional relationship with a new client and increase the likelihood of getting paid on time.
- Collecting Yourself
- For a soloist, focusing on collections means missing out on payable hours. Here's how one sole proprietor avoids the cost of collections.
- Case Study: Top Billing
- Ransom Environmental turned its bill-collection problem around by making sure that managers didn't ignore billing.
- How to Collect From Clients: Walk the Walk, Talk the Talk
- Collecting payment from clients is a matter of negotiating terms in advance, separating collection and business functions, and keeping internal accounting systems in order.
- Cranking Up the Earnings
- Forget revenue growth. For VCs these days, it`s the EBITDA, stupid.
- Tracking Progress and Profit on Projects
- These worksheets will help the owners of project-based companies calculate gross profit earned on individual projects that are underway in their companies.