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What is The Working Capital Cycle and How It Can Be Shortened?

These Ratios Help You Understand the Working Capital Cycle There are many financial ratios and key performance indicators that can help you manage your business. So many that a small business owner could tie themselves up for days calculating and annualizing the various performance indicators. But suppose your business is profitable but has been experiencing…

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How to Manage Creditors During a Cash Flow Shortage

Tips to Handle Creditors When Your Business is Short on Working Capital Cash flow issues are not uncommon for small businesses. Indeed, most small business owners will have struggled to pay the bills at one time or another. However, so long as there is a reasonable probability that a business can move out of its…

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Why Your Business Has No Cash But Makes a Profit

Identify Common Causes of Cash Flow Issues Business accounts can be prepared in one of two ways. The first method of accounting is known as cash accounting, which means that transactions are only recorded in the books when money changes hands. If you are using the cash accounting method, your accounts will mirror movements in…

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10 Tips for Determining B2B Customer Credit Terms

Examine Impact of Payment Terms on Cash Flow Most companies operating in a business-to-business (B2B) sector will need to offer customers credit terms. If a company insisted on cash with orders, it would be hard to win customers in a competitive B2B market. Whenever you sell goods or services on credit, though, there is an…

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9 Strategies to Help Your Business Recover After COVID-19

Jump-start Your Business Post Pandemic The COVID-19 pandemic has been devastating for small and large businesses alike. Even those companies that remained open during the pandemic saw dramatic falls in sales. And, of course, consumers have been badly affected by the crisis. Many people lost their jobs or were reduced to working fewer hours. The…

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10 Reasons Why Your Business Needs an Annual Budget

Create a Roadmap for Success with Your Budget Preparing an annual budget can seem like a time-consuming effort. You might even wonder if it is a worthwhile exercise for a small business. After all, the hours you spend crunching numbers on a spreadsheet could be better spent earning money. There are some excellent reasons why…

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10 Questions to Ask Before Giving Credit to B2B Customers

Implement Robust Credit Controls When a new business-to-business (B2B) customer comes to you with a large first order, your immediate inclination may be to open a bottle of champagne. However, there are risks involved in all credit accounts that it would be foolish to ignore. The most obvious risk of providing credit is that the…

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10 Ways to Retain Cash in Your Business Longer

Keep Tight Control of Cash Flow to Improve Profitability Cash flow issues in a profitable company suggest a timing issue. It could be that you are keeping costs under control and hitting sales targets, but the profit that you see in your accounts never quite seems to materialize in cash. Accounting convention dictates that income…

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5 Cash Flow Management Mistakes That Can Kill Your Business

Control Your Accounts Receivable for a Healthy Bottom Line A business cannot survive without working capital. It will not matter how good your products are or how compelling your marketing is. If the company cannot manage its cash flow properly, the company will collapse. Here are 5 cash flow management mistakes you need to learn…