"Accounts receivable. Almost all businesses extend credit to their customers. Make sure the amount of accounts receivable is reasonable in relation to sales and that receivables are being collected promptly. Identify slow-paying customers and have a strategy for dealing with them."

Manage Your Working Capital for Success « Welcome to SCORE Lancaster

What is your strategy?

 

"Without a steady cash flow, your business dies. This means that you need to be focused on your cash flow situation at all times: you need to know how much cash you have and how much is coming in. If you can see that you're likely to have problems, the time to take action is -  NOW."

 

"Ask any business owner to nominate the most frustrating thing about running their business and cashflow quickly comes up in the conversation. Running any business successfully entails maintaining a positive cashflow. Even in the most buoyant economy, let alone one that%u2019s floundering, cashflow can be a challenge."

"The most commonly applied 'Collection procedure' for many businesses is to wait for payment. Statements get sent out once a month and ... they wait some more."

 

"But unlike small business owners, corporate employees never have to worry about making payroll or keeping the lights turned on."