Growth is a pivotal goal for any organization. As companies expand, it becomes crucial to manage various operational aspects effectively. One such critical aspect is the management of accounts receivable. Maintaining low accounts receivable days, even amidst growth, is essential for ensuring a healthy cash flow and sustaining financial stability. In this article, we’ll explore some practical strategies to achieve this goal without losing sight of the big picture.
Tag Archives: Accounting Tip
Days Sales Outstanding: Get Paid Faster tips
You’ve made a sale! That’s great but the customer hasn’t paid and the invoice is now 90 days past due. This scenario is common amongst many businesses. Many businesses resort to offering extended payment terms but this is a bad idea because it affects their cashflow. What you really want is client satisfaction because whenContinue reading “Days Sales Outstanding: Get Paid Faster tips”
E.O.W(End of the Week) Notable Tip: Return on Assets
Happy Friday! I hope you’ve had a great week. Today, I would like to discuss return on assets. Effective companies utilize their assets wisely by ensuring for example that low margins are supported by an equally low asset density coupled with the ability to remove waste and inefficiencies from processes. Continuous investment in assets andContinue reading “E.O.W(End of the Week) Notable Tip: Return on Assets”
Lean Wednesday Tip: Tax considerations for C Corporation Dividend Payouts
“Avoid double taxation of a C Corporation’s dividend payout by structuring payments to shareholders as consulting fees. Shareholders must actually offer advice for the payments to be considered valid tax deductible transactions.”
Lean Wednesday Tip: Accounts Payable Performance
“By encouraging your A/P team to report and make critical department KPI metrics visual, such as, process cycle time, activity lead times, and cost per invoice with industry and competitor comparisons you realize the opportunity to reduce costs, increase productivity and streamline processes.”
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