Managing Your Cash Flow




Managing your company’s cash-flow could mean the difference between keeping your doors open, or shuttering for good, yet many business owners struggle with implementing effective working-capital management plans to keep cash on hand. If you’re struggling to maintain liquidity, consider the following strategies:


  1. Negotiate with your suppliers to increase your payment due dates. For instance, try to extend payments terms from net/30 to net/45 or 60. The extra days could help with managing cash disbursements.

  2. Offer cash discounts to customers to encourage them to pay on delivery or within a 10-15 days after receiving invoices.

  3. Consider opting for a lock box with your bank to allow for quick check deposits while simultaneously investing in short-term investments to offset bank fees. You should also, expand your payment options for your customers.

  4. Arrange for a line of credit or letter of credit with your bank. The benefit of a line of credit is its similarity with a credit card but with a higher limit. The letter of credit will be specific to your supplier.

  5. Inventory management is also important to managing cash-flow. Reduce inventory for products that are less popular with your customers. This allows you to turn-over inventory faster and reduce overhead expense. If you’re in the service industry try to differentiate your service offerings to increase demand.

  6. Implement lean operations management; reduce wastage, lower fixed costs and increase quality.

  7. Lastly, take advantage of all federally funded loans. Both the PPP and the SBA EIDL allows for deferred payments at low interest rates.


Proactively managing your cash-flow reduces both your credit risk profile and also your stress-level. Get in-touch with us for additional cash-flow management strategies tailored to you and your business.


From your preferred accountants,


Specialists Accounting LLC

Boca Raton, FL

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