Tough times require tough measures and this includes a daily regimen that has print owners reviewing cash issues including cash flow. Here are seven time-tested cash crisis tips for getting control over cash flowing out.
Set a daily cash meeting. You should have a daily cash meeting with the bill payor in your company and your production manager to assess priorities and action steps. Designate one person to handle cash matters. All Accounts Payable inquiries should go to that person. Require approvals. No checks should go out unless you personally approve and sign them. Control the message to creditors. Set up agreed upon message points that your bill payor and other staff use in speaking with creditors. Keep everyone on the same page and on message. Monitor your accounts receivables person. Review specific action steps daily with your AR person. Limit purchasing. Don't buy anything that isn't immediately needed. Pay what must be paid. You must pay wages, payroll taxes, health insurance, 401(k) matches, and other personal liability commitments. Don't miss these and make them a priority.
It is not uncommon for an owner to spend 1-2 hours a day on cash during tough times. It's time well spent. Don't skip it.
If you are an NAPL member or would like to become one, please feel free to contact me for a complimentary template to guide your short-term cash planning.
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