I remember when my kids were growing up and the frustrations
I had teaching them about cash management. They didn’t understand that just
because they had checks left didn’t mean they had money left. Unfortunately
many business owners have that same mistaken idea when they look at their
revenue and profits and can’t understand why they have no money to pay their
Many great businesses are started by people with unique
ideas and talents however they quickly run into issues because they mistake
profits for liquidity. Why does this happen? Most business discussions and
metrics talk about company’s revenue growth or profitability, especially around
the end of quarters when all the financial markets are clamoring for earnings
results. Unfortunately you never hear about cash flow.
Managing cash flow, whether you have a new company that is
growing, or an established company that is sailing along is one of the most
important disciplines to a successful, long term company. Many companies try to
manage their cash through lines of credit, equity sales, personal loans, and
one of the worst, factored receivables.
Are you struggling with your cash flow? Do you have a solid cash management and
forecasting plan? If this is an area where you are struggling, NeoSystems can work
with you to help you get a handle on your cash needs and develop a plan to
allow you to stay out of trouble and let you focus on what you do best, deliver
and delight your customers.