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438: Key Financial Metrics for an Architecture Firm with Hugh Glazer

Business of Architecture Podcast

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Is There a Healthy Percentage of Accounts Receivable?

With the accounts receivable and this is often an interesting one. I think there's times of the month where people are going to find that maybe 50-60 percent of the receivables are going to be in that 45 to 80 days. You want to work hard to kind of reduce that but my ideal perspective is you should have zero over 90. There's lots of techniques we talked about some of them in the program retainers pre-billing flat-billing things to help balance that off. The project manager they should be trained that asking to be paid is part of the job of the project manager.

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