9 Things Every Business Owner Should Know

Picture 1.PNG

Always Remember. Cash is king :

Cash crunches happen from time to time, but if they are chronic at your company, then you may have to re-think the way you do business. Though cash-flow squeezes often seem satisfying, there are only a few explanations. Your gross margins may be too low, caused by discounted prices or out-of-control direct costs. Your overhead, including rent and payroll, may be too high. Your payment terms may be too liberal or your billing procedures too slack. You may be tying too much money up in accounts receivable or you have too much debt from nonpaying customers. Finally, it is also possible that you are holding too much inventory. If you feel tight on cash, investigate on each of these possibilities and figure out which one is causing the biggest drain on your bank account.

READ MORE AT SONNYCPA.COM

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s