Can You See Your Cash?

A looming economic downturn has resurrected the “Cash is King” mantra placing cash flow visibility straight into owners & leaders cross hairs. So I ask, how do we get more visibility into the future cash needs & uses to avoid (or minimize) any turbulence in operations?

Some may wonder, why cash becomes more important when the economy sours. As the Fed increases interest rates, the cost of easy money becomes more expensive. This increase quickly erodes profit margins. Collecting cash requires discipline, consistency & a business wide commitment. The reality is, cash is everyone’s responsibility. Without cash, businesses can’t pay for the basics such as supplier invoices timely. You may get a reputation for slow payments and obtaining favorable credit could cost you more money or, in extreme circumstances, suppliers may withhold shipments of critical goods & services until payment is made. More practical uses of cash include payroll – a key asset. Whispers in the halls detract from productivity and hamper profitability. Steadfast collections are critical to cultivating a “Cash is King” culture.

Weekly meetings & measurement help drive focus and accountability to ensure cash is collected timely & spot problems quickly. Develop a credit management plan and use it. Make certain you refer, revise and refresh the plan as business needs arise.

These meetings should be folded into existing weekly operations meetings so that stakeholders understand issues & can provide critical information and support to collection activities. Collections are part of the business; not a separate activity.

At CCS, we develop a comprehensive approach to improving cash collections & can implement a solution to fit your needs. If you are looking for a cash solution to collect your Almighty dollar, we recommend giving us a holler!