How To Create a Cash Flow Forecast

Predicting future cash flow plays a critical role in maintaining the company’s health, and yet many small businesses have no satisfactory forecasting mechanism in place. To some extent, this is understandable -- large corporations have more access to elaborate computer-generated data processes, while smaller companies must rely on intricate, well-coordinated interplay between department heads and senior management to make sure everyone is on the same page.

Accounts Receivables: Leveraging Credit Policies to Improve Liquidity

Overdue receivables obviously have a major impact on your company's cash flow. If you don't have a clear, detailed, firm credit policy in place, expect customer confusion, resentment, and an ever-increasing gap between your receivables and your payables. Credit Where Credit Is Due To whom will you extend credit, and how will they qualify? Small businesses should run credit checks just as rigorously as the Fortune 500 companies do. Ask for financial statements, credit reports, and vendor or customer references.