A Story of Cash Flow

“A frustrating roller coaster of uncertainty.”  That’s how one CEO described their business to us.  The reference is not unfamiliar to our team.  One month you’re flush and the next you’re strapped for cash.

In this particular instance, the CEO, an avid golfer, was overwhelmed with multiple discouraging signs.  These factors were taking the joy out of the business and making for long, stress-filled days:

  • Aging accounts receivables (beyond terms)
  • Increasing interest expense and growing debt
  • Funds not on hand for payroll

How did we help?

  • By establishing a more frequent invoicing schedule and implementing a proactive collections program for the client, we were able to eliminate late-paying customers completely within 90 days.
  • Shopping for lower interest rates on bank/credit cards, shifting debt to the lowest interest options available, and recommending/executing a debt reduction plan drastically reduced   the expenses and stress of the company.
  • Negotiating extended terms with vendors and securing a revolving line of credit proved to be instrumental in maintaining minimum cash balances to assure payroll commitments each month.

With increased confidence in the predictability of the cash flow and a lot less stress, where do you suppose this CEO spends more time now?

Golf-Course

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Controllership

When you need:
  • Clear processes for cash controls
  • Analysis of results
  • Customized reporting

Accounting

When you need:
  • Timely and accurate bookkeeping
  • Reconciliations and monthly closes
  • Familiarity with popular accounting software
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