As the economic conditions change improving your cashflow will become vitally important for all businesses. The speed at which you convert profits into cash will determine whether businesses will survive in the tough economic conditions ahead. The crisis in Europe and the structural changes in the Australian economy brought about by the mining boom and the high Australian dollar will affect all businesses.
As accountants, we are always working with our clients in improving all aspects of their business including their cashflow.
In this recording of our recent webinar, we discuss 20 ways to improve your cashflow in the short term and 20 ways to improve your cashflow in the long term.
One of the areas that I discuss in the video, is the principle of reducing your debtors days to zero. Whilst many business people will say that it cannot be done in their industry, there is at least one company that has managed to change their sales systems, internal processes or business model so that their debtors days are now zero. In some industries, including professional firms, they are getting paid before they have even started the work or delivered the product.
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