15 Ways to Improve Cashflow
David Gibbs, CPA, MBA
Focused on You. Dedicated to Your Success.
July 2, 2018

Financial experts claim that 80% to 90% of small business failures are caused by poor cash flow. Many profitable companies find that they are insolvent because of uneven cashflow. In other words, not enough cash is coming into the business in time to meet expenses. It is therefore essential that companies carefully manage cash flow, particularly if they operate in rapid-growth or seasonal industries. Here are 10 ways to improve your cash flow:
  1. Invoice immediately. 
  2. Bill on the same day each month. 
  3. Use electronic billing. 
  4. Get payment terms and agreements in writing. 
  5. Include a specific due date. 
  6. Charge late fees. 
  7. Offer incentives for early payment. 
  8. Factor (sell) your invoices. 
  9. Hold off paying invoices. 
  10. Take advantage of payment plans. 
  11. Monitor your cash flow weekly. 
  12. Start collections as soon as an invoice is past due.
  13. Establish an account receivable (A/R) management system.
  14. Dedicate staff to A/R management or outsource the function.
  15. Establish a line of credit.

Feel free to call any member of our team at 610-828-1900 with questions on improving your cash flow. You can also contact either David Gibbs, CPA, MBA, partner, at David.Gibbs@MCC-CPAs.com or myself Marty.McCarthy@MCC-CPAs.com . We are always happy to help. 
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).