Tuesday, December 4, 2007

HOW TO INCREASE YOUR CASH FLOW

HOW TO INCREASE YOUR CASH FLOW

For most companies, accelerating receipts to make cash available

quickly may be far more important financially than earning the

maximum interest on a disbursement float.

Their daily objective is to get all checks and payments processed

and cleared as immediately as possible in the company's bank

account. All checks should be taken care of promptly. The challenge

is to make employees realize the difference between big or

important checks requiring special attention and those that are

routine receipts.

Rather than keeping a check received after 3pm until the following

morning, it may be strategic for your cash flow to have an employee

attend to those checks and have them deposited that same

afternoon.

Likewise, if you can assign the mroning shift to bring checks as early

as the bank opens may save you a day in the float.

Become aware of your bank's check clearing policies and

procedures.

Work around those schedules. For distant customers bypass the

postal system by asking the customer to make a direct deposit.

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