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What are the best tactics for improving cash flow through receivables and payables management?

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What are the best tactics for improving cash flow through receivables and payables management?

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Every business should have a stated process for collecting money in a fast and efficient manner. Track and monitor the average number of days it takes your customers to pay and proactively work with late customers so you’re not caught by surprise by a growing increase in your accounts receivables balance or a cash shortage. Accepting credit cards, debit cards and collecting payments through a lockbox are all ways to decrease DSO and improve cash flow. While these solutions require a small fee, the upside includes reduced staff time devoted to collections activities, drafting reports or creating bank deposits. Once your company is receiving payments more quickly, the next step is to lengthen the time you have the funds. Pay your vendors with a purchasing card to improve float and review all partner agreements so they are paid at the maximum allowable limit. Renegotiate to more favorable payment terms with vendors. How can reporting help? No matter how you choose to collect the money, re

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