Don Connor Helps Business Owners Close Cash Flow Gaps

March 5, 2011 - PRLog -- Connor and Associates is a Dartmouth-based accounting firm owned by CGA Don Connor, who is taking the industry by storm in his efforts to educate small business owners regarding issues that can make or break their success.  Don’s blog is his voice for sharing important information with his readers, and his most recent post reveals strategies for closing cash flow gaps.

According to Don’s post, “A cash flow gap occurs when your cash inflows and cash outflows don't keep pace with each other, leaving your business short of cash.  This is an especially common problem for small businesses, where copious cash outflows may repeatedly precede cash inflows; all kinds of expenses, from purchasing materials necessary to do the work through licensing or permit fees, may have to be paid out before your small business gets paid for the work completed."

The article comments that it’s crucial to keep a close watch of cash flow so that it’s possible to forecast potential problems that may occur. Additionally, Don’s blog post recommends “taking steps to shorten your cash flow conversion period, so your business can bring in money faster.”

For example, it is important to prepare invoices right after delivery of goods or services takes place.  Also, monitoring your client’s use of credit and adjusting credit limits when necessary can be a helpful strategy.  Another option is to offer customers a discount if they pay early, and creating a policy for deposits also works for projects that are underway.  Clearly tracking past-due accounts and making active attempts to collect are also very important strategies.

The bottom line, according to Don, is that “monitoring your cash flow and taking steps to shorten your cash flow conversion period will go a long ways towards eliminating those dangerous cash flow gaps.”  For the most success, Don recommends consulting a professional.

To find out more about Don Connor and avoiding cash flow gaps visit: http://www.connoraccounting.com.

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