By Linda Earls
The economy is improving. Business is picking up. Contracts are being signed. New customers are contacting you and requesting your help. Your business has survived the recession. But wait a minute. Where is the cash? How come, when business is increasing, cash reserves are low and getting lower? How come, when your contracts are with such stellar organizations, your Account Receivables Aging is increasing at an alarming rate?
Many of the larger organizations, whether they are government, nonprofit or commercial have rigid payment procedures. You need to understand what their payment practices are and how it will impact your cash flow before you decide to accept their business. For instance, in order to remedy budget gaps, some governmental entities have "shutdown days."
