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Treasury and Cash Management

The balancing of income and expenses (cash flow mgmt.) is ideal for sole proprietors and small business owners. Some of the strategies Verlin uses for cash flow management include:

  • Address cash needs – identify problem areas, prioritize collections and payables, enhance business relationships and forecast cash flows.
  • Create budget – assist business owners with creating budget plans to manage cash flows and prevent cash shortages.
  • Collect receivables – distribute invoices immediately after services rendered, offer discounts for customers who pay promptly, identify and pursue
  • Slow paying customers, consider factoring, request upfront retainers on services and setup direct deposit if allowed by customers.
  • Manage creditors – develop rapport with creditors, take advantage of net terms, review cash flow projections before accepting new payment terms and request due date changes if certain bills need to be paid later in the month.
  • Manage costs – review expenses that vary and look for opportunities to reduce cost, reduce personnel expenses and reduce travel and entertainment.
  • Implement controls – review and discuss bank and P&L statements monthly to examine cash flow. If necessary, create dashboard that identify problem areas and highlight KPIs.

In addition to the services above, CFOs will:

  • Examine best lending options for equipment or working capital needs with banks and other financial institutions.
  • Identify investment opportunities for idle funds to increase cash reserves.
  • Produce proforma financial statements for lending, investment and strategic planning purposes.