For some businesses keeping the A/R current is not always the number one priority. The reality is, when you are behind in collecting your invoices, your cash flow is affected. Here are a few things to keep in mind when dealing with your A/R.
BUILD STRONG CUSTOMER RELATIONSHIPS
Customers are the lifeblood of your company. Providing customers with quality service and building a strong rapport will keep cash flowing into your business. Happy clients are loyal clients - and loyal clients are more likely to pay their invoices in a timely manner.
DAYS SALES OUTSTANDING (DSO’s)
How often do your clients pay their bills? If you are waiting more than 30 days for your clients to pay their invoices, that is affecting your overall cash flow. By keeping your DSO low, you can count on less aged receivables and more cash flow coming your way!
SELLING OR BORROWING
When the time comes for you to sell your Corporation, you want your Accounts Receivable in really great shape. The value of a company's brand name, solid customer base, good customer relations can make or break the sale.
When the opportunity arises for you to grow your business, you may need capital for the growth. Having a low DSO from your Banker’s perspective will make the borrowing process that much easier.
So here's my question for you. How well are you looking after your DSO’s and A/R? If there are any opportunities for improvement in this area of your business.....that is where I come in!
I can help improve your cash flow by managing your accounts receivables and DSO's. As a business owner you can then focus on marketing your company, acquiring new loyal customers and increasing your sales. I work hard for my customers AND your banker will love you!
The bottom line is, when it is time for you to move on to the next chapter of your life, your business will be in great financial shape!
If you would like more information on your A/R & DSO's and how I can help, please give me a shout at 306 520 4009 .