We’ve talked now about how to use DSO as a management tool to monitor your accounts receivable. And we’ve talked about how to become more strategic about how to get paid when you have customers who are much larger than you are. Now we are going to drill down a bit and talk about a…
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Tools for managing accounts receivable – a mindset change from “collecting” to “expediting”
Most people think about managing accounts receivable or collecting as being a hard-nosed, demanding approach to making someone pay. It’s natural to think about the role of turning your receivables into cash as one of “collections”. You have to “collect” what you are owed. Makes sense, right? So the person charged with the responsibility for collecting…
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Tools for Managing Accounts Receivable – Days of Sales Outstanding (DSO) is a powerful metric
Making a sale, but never collecting the cash from that sale, is the fast track to a cash flow crisis. Your role as CFO, or as the entrepreneur leading the company, includes being smart about turning those sales, your accounts receivable, into cash as quickly as possible. Unlike a nice bottle of red wine, receivables…
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Your CFO to the rescue: Solving the mystery of cash flow – Part 2
In Part 1 of this series, I introduced you to the two questions at the heart of understanding and managing your cash flow. You need to have the answers to these two questions in order to properly manage your cash flow and make smart decisions about how to use your cash. What happened to the…
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