In accounting, the cash cycle refers to the time between when you first spend cash for a job until you receive full payment for a job. There are several steps in between and some of these steps will use up all of the cash you have in the bank before you receive more cash. This is where we help!
Most business owners, especially contractors, do not realize that if they are invoicing customers that pay them at a later date, they are giving loans to their customers. If you were to ask the same owners for a loan for the same amount as one of their jobs, they would most likely laugh and tell you they just don’t have the money. However, there is no difference.
We work with business owners to help them understand that Dave Ramsey’s techniques are fantastic, especially in their personal life, but if they are extending credit to their customers, they are violating one of Ramsey’s cardinals to never a borrower or a lender be. You will cripple yourself if one side of the equation is cash only while on the other side you are lending out all of your cash!
Some of the key tools in helping a business owner make it from one end of the cash cycle to the other are:
Call now to see how we can help you have cash in the bank and be able take your profit when you are paid rather than months down the road or not at all!