Many companies report huge sales figures but still lack cash to fund operations or meet current financial obligations. This is because a large majority of sales are on account, resulting in huge receivables rather than cash. Many companies are forced to turn to banks for short term financing at prohibitive costs. Some resort to third party factoring houses or sell off receivables at deep discounts which erodes the profits that would have been made from the sales. The importance of cash to a business entity cannot be emphasized enough. 82% of small businesses fail due to inability to control this critical business necessity. While this finding is specifically analyzing small business, the same principle applies across business of all sizes. Companies need to be solvent to fund business operations. They also must properly manage operating costs to be profitable. Timely collections on accounts receivable provides not only the cash flow needed to stay solvent, but it also reduces the nee...
Finding cool ways new technology and emerging trends is creating new opportunities for businesses.
