Mastering Cash Flow Management

In this solo episode, CJ does a deep dive into cash conversion cycles, telling listeners what he’s learned about them, sharing real-life tales from his career, and explaining how certain companies are excelling at theirs. CJ starts by breaking down how he got his company’s Days Sales Outstanding (DSO) down from 55 days to 37 days (a 33% improvement) and Days Payable Outstanding (DPO) up from 35 days to 47 days in the course of a year. Then he talks about how he achieved this through three big changes that he made, before delving into inventory management. Listen in to hear the stories of companies who have perfected the art of the cash conversion cycle and the dynamic methods they use to manage their cash inventory, their accounts receivable, and their accounts payable.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

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SPONSORS:

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Planful is a financial performance management platform designed to streamline financial tasks for businesses. It helps with budgeting, closing the books, and financial reporting, all on a cloud-based platform. By improving the efficiency and accuracy of these processes, Planful allows businesses to make better financial decisions. Find out more at www.planful.com/metrics.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

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FOLLOW US ON X:

@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(01:30) Sponsor - Mercury | NetSuite

(03:43) The DSO and DPO Improvements CJ made

(05:16) Changes to the Off-the-shelf Customer Agreement

(06:18) ACH payments

(09:25) Renegotiating Payables

(11:45) A Note on Inventory Management

(12:35) The Innovative Way CJ’s College Professor Delayed Payments

(14:53) Sponsor - Maxio | Planful | Leapfin

(17:58) Gymshark’s Pre-sale Drop Hack

(20:43) Starbucks’s Gift Card Program

(23:34) Chewy Pet Food’s Subscription Model

(26:11) Ferrari’s Customization and Their Cash Conversion Cycle

(27:58) Virgin Airline’s Dynamic Pricing Strategies & Creative Financing

(30:54) Wrap