|
In this difficult economic environment, effective cash flow management can be the difference between a company that survives and one that does not. A decline in revenues coupled with customers paying late and increased expenses can cause a serious cash gap leaving a company unable to fund operations.
By having a mechanism in place that can project a shortfall in cash flow, a company can take action and avoid a cash crunch. A sound cash management strategy should not only sustain adequate cash flow but also seek to shorten the overall cash conversion period.
Managing cash begins by looking at the components of a company's business that drives cash flow. For manufacturers and distributors, these key components are typically accounts receivable, inventory, and accounts payable. Proactive management of all three of these components should be part of a company's cash management strategy.
|
Helping to implement an effective cash management program is just one of the many ways Sax Macy Fromm & Co., PC can help your company.
For further information, please contact Al Traverso, CPA at atraverso@smf-cpa.com.
|
