Is your business experiencing cash flow issues? If so, one of four classic culprits are likely to blame. Pay attention to these issues, and watch your finances improve.

Culprit #1: Poor Collections Practices

The most common culprit of cash flow issues is poor accounts receivable practices. Be sure to invoice promptly and follow up on overdue payments.

Culprit #2: Low Pricing

If your pricing is too low, you may not have enough of a profit margin to cover your expenses.

Culprit #3: Low Sales

Many times, the real cause of your cash flow issue is that your sales are too low relative to your fixed overhead. 

Culprit #4: High Production and Fulfillment Costs and Expenses

Be sure you analyze your costs of doing business (including labor, raw materials and overhead) to see where you can enhance savings. 

Published on: May 10, 2017