The NonBillable Hour

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It's the Cash Flow, Stupid

I've been following Will Keller's The Accounting Blog for a while and found this post today with Will's Advice for Managing Cash Flow. From the post:

Now please listen up because we're getting to the important part. For most companies, the key cash flow drivers are as follows: pricing, sales volume, credit terms, inventory management, supplier terms, and expenses. In other words, the specific things that your company does in these six areas- from your pricing strategy to your payment terms to the amount of inventory you carry- will directly impact cash flow. That may not sound very glamorous, but the results can be exciting.

The advice in the article is (or should be) obvious to all lawyers, but it bears repeating from time to time.