“Cash is King!” the old saying goes. Indeed, cash really is the lifeblood of any business, and the cash conversion cycle metric is one of the most helpful ways to gauge cash flow.
Without strong cash flow, companies can be in danger of running low on...
There are a lot of different factors that go into successfully running and growing a small to mid-sized business. One that’s sometimes overlooked is shrewd management of working capital in order to ensure ample liquidity and a strong cash position. This will give companies the ability to be flexible...
Many Los Angeles and Southern California business owners and entrepreneurs are laser focused on boosting their companies’ revenue and profits. After all, without sales and revenue, there wouldn’t be a business to manage. While making sales and earning money are obviously important aspects of running a business, these aren’t the areas...
Despite some recent signs of improvement in the economy, cash flow continues to remain tight for many Los Angeles and Southern California businesses. Regardless of how strong their sales and revenue are, business leaders are discovering that it takes cash to keep their companies going. There’s a reason cash...
In the course of our work with many wholesalers and manufacturers, we hear about the different financial and operational challenges these businesses face. In this new series of articles, we take a close look at both these challenges and the potential solutions that an outsourced CFO services provider can...
“Cash is king!” It’s an old business axiom that almost sounds cliché today, but you know what? It’s absolutely true. Most business executives focus heavily on sales and profits, and rightly so. Any company that doesn’t generate revenue and turn a profit won’t be in business for very long. But...
There are many reasons why a business becomes successful, but nothing can have a greater negative impact on a business than effective cash management.
For many businesses, the process of cash management becomes a cumbersome and haphazard process driven by the needs of the moment. In...
Depending on their cash flow cycle, businesses often find that there is excess cash in their checking or operating account. Savvy CEOs and CFOs should strive to manage this excess cash for maximum return while minimizing risk and maintaining adequate liquidity. There are three main objectives you should strive for when...
In a recent article, we discussed the importance of understanding your company’s cash flow cycle and offered some tips for shortening your cycle in order to improve cash flow. This discussion, however, assumes an understanding of a basic financial concept: the difference between cash flow and profits. It can be...
As they continue to face challenges in this uneven and inconsistent economic recovery, many CFOs and CEOs are placing a renewed emphasis on optimizing cash flow as a way to help improve their company’s financial situation. Improving cash flow starts with an understanding of the cash flow cycle. Following...