But I Still Have Checks Left!

February 07, 2014
 

Author:    Randy Cole

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 bills.

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.

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