Sunday, June 29, 2008

Is Your Cash Coming or Going?

If the slowdown in the economy is affecting your small business, improving your cash management may help when sales are slow. I quick review of a small business’ cash collections policies will reveal if changes (such as interest on late payments, or requiring deposits for jobs) will speed up cash coming into the business.

On the cash disbursements side of the equation, reviewing the costs that vendors charge for goods and services and possibly renogiotiating your rate will keep more cash in your pocket. Small business owners should also consider investing excess cash in the bank in a interest bearing account and have their money working just as hard as hard as the owner.

Keeping Your Business N Synergy

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