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How To Get More Cash For Your Business In 2014

cashAh, cash!  I love having cash in my business, don’t you? 

I know it’s a cliché, but if you own a business, you know cash really is king.  It’s stressful when it’s tight, and people don’t really know what it’s like to worry about having to meet payroll or pay rent.

So, here are a couple ways to get more of it in 2014:

1.  Increase your accounts receivable turnover – this basically means collect your accounts receivable quicker.  The quicker you get it in, the quicker you get your cash.  Various ways to do this are to shorten your payment terms and offer discounts for quicker payment

2.  Increase your inventory turnover – this means selling through your inventory quicker to generate cash.  This can be done by offering sales or discounts, or not stocking as many items that don’t sell well.

Numbers 1 and 2 are huge cash drains in many businesses.  Having a lot of money tied up in receivables and inventory can bleed you dry.

3.  Decrease your accounts payable turnover – this means slow down how quickly you pay your bills.  Holding onto this cash until you collect receivables can definitely help your cash position.

All of these items require planning, and solutions for each business will be different.  But through proper planning and execution, you can literally change your cash position for the better pretty quickly.

Through our CFO Outsourcing division, we can show you how to maximize the cash in your business too.  Give us a call today and see how you can increase your cash in 2014.

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