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?