Of Interest In This Newsletter…

• Increasing Cash Flow
• An Invaluable Software Tip…
• Improving Efficiency

HERE'S AN IDEA TO HELP INCREASE CASH FLOW…
Are you happy with the level of your outstanding receivables? Receivables are typically measured in the "average number of days sales outstanding", for instance 45 days. If your "average days" or overall dollars outstanding are too high you probably need to examine your accounts receivable process. For example, are your terms clearly visible on your invoices? Do you know the days of the month your customers typically run A/P checks (make sure they've received your invoice in time to have it included in their next check run)? Do you regularly send your customers statements of their account? What is your process for handling a customer who hasn't paid you within your terms? Remember, receivables are cash that your customers are holding for you. You've already delivered the good or service. If your receivables process is inadequate you allow your customers to hold your cash for longer than they really should!

YOUR ACCOUNTING SOFTWARE…
Have you ever closed an accounting period, only to have someone go back and make additional entries? QuickBooks (and some others) has a feature that allows implementation of password protection to prevent adding to or revising data from a closed period. No adjustments can be made for that period without the password!

EXCITING TIMES ….
Being part of a company's rapid growth is exciting! Multiple responsibilities, rapid-fire decisions, days that fly-by, and experiencing the satisfaction of having ideas turn into successes are some of the thrills of being on a steep growth curve.
Inevitably, in an environment such as this some important things fall through the cracks. Here was the situation: because of growth one accounting staff member transferred to inside sales, another took on additional responsibilities leaving critical bookkeeping work undone. In addition, the company was in the process of implementing a new, industry specific software package. Things reached a critical point when the company couldn't get an increase in their line of credit from their bank because they didn't have accurate, up-to-date financial information.
Today, the books are organized, financial statements are issued by the 20th of the following month, and an accounts receivable aging and borrowing basis are updated monthly. The business owners are sleeping better, and their banker feels better about the information he receives. The moral of this story? Being part of a rapidly growing company is exciting - but occasionally help is needed. By the way, for those of us at StreamlineAccounting, helping a rapidly growing company stay on that steep growth curve is very exciting too!

FYI, StreamlineAccounting has experts in bookkeeping and accounting processes. If you think some of your processes could use updating, call us for a no-charge evaluation.

"Half this game is 90% mental."
Yogi Berra

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