Cash Flow is down

What could be the reasons for why cash flow is down?

  • Are the company’s projects under-billed?
  • Is there a record updated of current projects whose payments are due?
  • Is the company’s revenue timely and appropriately revised?
  • Are the company’s services billed on early basis and if not, how much is over due each month?
  • How often does the company receive late payments?
  • Do the project managers know about customers who pay late?
  • Is the company’s operating line of credit high?
  • Is the company’s monthly capital cost maintained and updated?
  • Are the payments are made at an early stage?
  • Are the payments made within the specified terms?
  • Is the company losing discounts offered?
  • Are the sub-contractors/suppliers being overpaid?

About the Author: AJ Amjad Khanmohamed

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