Cash is King
Cash is king. Everybody knows it and yet businesses are lax in their cash flow reporting and forecasting. CEO and founder of TGG accounting, Matt Garrett explains why “cash is king” and what you can do to have more of it and move the cash you have more wisely.
55% of businesses are failing in the first four years. According to The Brookings Institute 11% fail every year thereafter. This is all attributed to lack of cash. Here are 6 elements of cash flow management to watch:
- DSO (how fast you get paid)
- DPO (how fast do you pay people)
- Discounts – give them to get paid faster, ask for them to reduce expense
- Human capital management (utilization)
- Inventory management
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
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First off I would like to say great blog! I had a quick question which I’d like to ask if you
do not mind. I was curious to find out how you center yourself and clear your head before writing.
I have had trouble clearing my mind in getting my thoughts out there.
I do take pleasure in writing however it just seems like the first 10 to 15 minutes are wasted just trying to
figure out how to begin. Any suggestions or hints?