I’ve been on a mission to create positive cash flow for every company ever since the time, 15 years ago, when I couldn’t pay my company’s bills even though I had a hefty backlog of receivables.
When the timing of cash coming in and cash going out is out of sync, you create negative cash flow. You’re always behind and you spend a lot of precious mental energy struggling to deal with the fallout. Calls to vendors asking for a few days more; juggling payments; using a line of credit to get by; pushing your sales team to get someone to pay quickly.
I know from my advisory work that negative cash flow can be reversed. The Don’ts in this chart are typically habits or practices you’ve been doing for a long time. You can choose to replace them with DOs.
Two of the DOs can be implemented easily and quickly.
1. Set your invoicing system up to send invoices daily
2. Set your accounting system up to create daily cash flow reports.
The others will take some thinking, planning and a strong commitment to implementation. It’s hard—and definitely possible–to overcome years’ worth of thinking and habits.
One of the best choices I made all those years ago was to consult with an expert. That’s what we offer to our clients. When a practice is a habit or a product of one way of thinking, getting an outside perspective and solid, actionable advice makes it much easier to improve cash flow. Call or text 703-801-0345 or email us to start creating positive cash flow.