Keep What You Earn How to Accelerate Your Cash Collection
In this episode, I dive into the concept of receivables in accounting. I'll explain how receivables represent money owed by customers and highlight the importance of collecting these funds. Whether the payments are due to installment agreements or scheduled future payments, factoring receivables into your cash flow forecast is crucial. We'll discuss the significance of assessing your financial pipeline based on committed and contracted sales. Tune in to gain valuable insights on managing receivables and optimizing your business's financial health.
What You'll hear in this episode:
[0:50] The Difference Between a Contracted Sale and Cash Collected
[1:30] Sales Involving Payments at a Later Due Date
[2:20] The Struggle with Collection of Money
[3:40]How To Accelerate Collection of Payments
[6:25] Paying Commissions on Collected Sales Instead of Contracted Sales
[9:35] Having a Policy in Place for Collections
If you like this episode, check out:
A Cash Flow Reframe You May Need
How Cash Flow is Different From Profit
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.