There's no question that businesses and cash flow have been affected by the recession and pandemic. Some companies have taken advantage of this time to pivot, rebrand or change focus to save their businesses and keep their customers happy. In the middle of all of that, you might be facing the stress of lacking resources necessary to keep going. You might also be surprised to learn that you actually already have the company funds you need.
We're generalizing here but in many businesses, no matter the size, there's money somewhere that could be made available. Here are a few places where cash may be hidden within your business:
To locate the hidden cash within any of these areas, a deep dive into company financial records is necessary. Getting organized and using financial software can help shine a light on what's missing as well as budgeting expenses.
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When business owners struggle to follow through on discussions around money, customers often get away with paying late or not at all. Often, the reasons for late payments are because invoices are not going out regularly. Some customers are given credit, even though their business background check reveals they are not creditworthy. In other instances, your accounts receivable team isn't checking up on late payments until they're way past due.
We get it. Talking about money makes people feel uncomfortable. If you're balancing all the duties of a growing business, you may not have the time to follow up on a late invoice or do credit checks or other accounts receivable management duties. If time and money are tight, then it's time to outsource your accounts receivable.
Within your accounts receivable, you may find the motherlode of cash reserves. If you're not on top of collecting on unpaid invoices for goods or services you've already provided, then you're overlooking one of your most abundant resources.
Here are a few ways to clean up your accounts receivable for hidden cash:
Again, with time and money being stretched tight, outsourcing A/R management, clean up and collections would be a faster option to access cash. Enterprise Recovery offers this service to those growing businesses who wish to increase receivables without paying higher fees for collections services. Limits can be requested to determine which accounts are managed, such as invoices over a certain amount or only those that are 90 days late. Contact us to let us know if we can help.