5 ways to improve your cash flow
They say “cash is king,” and the reasons why are many.
To name a few: Lack of cash can damage relationships essential to business success. Consider the repercussions when you can’t pay vendors or make payroll.
Cash flow is a key factor in determining business value. Considering selling any time soon? Your cash level counts.
Finally, a profitable company that’s depleted its cash could go under. Don’t forget, cash and profits aren’t the same, says Phil Catron, president of NaturaLawn of America.
“At end of year, if you made a profit of $100,000, you might be writing the government a check for $38,000 and they want it by Jan. 3 … If I don’t have the cash to meet my obligations, I’m out of business,” he says.
We turned to financial experts and landscape professionals to understand what strategies other companies should consider to improve their cash-flow situations.
Below are links to five tips for improving your cash flow.
1. Manage with cash flow reports
2. Get credit before you need it
3. Recognize the power of recurring revenue
5. Understand basic accounting
Subscribe to Landscape Management
If you enjoyed this article, subscribe to Landscape Management to receive more articles just like it.
