Kathleen Orlando, is a CPA who has posted a valuable blog update regarding the importance of a good working capital strategy.
“Small business is built on personal relationships with our customers and the competition is fierce for almost any product or service. These tough economic times have been particularly hard for many small businesses and many of my best clients have seen their cash flow come down to a trickle. Here are a few strategies to use to keep on top of your cash flow. You don’t want your clients’ cash flow problems to result in your cash flow problems.”
Kathleen recommends using a good contract to secure the job, do the work effectively, make sure your accounts receivables are current, check customer credit and set credit limits, and for bigger creditworthy customers consider payment terms. To read the whole post go over to AccountingWeb.com.