In the first part of this blog we talked about the main components of good cash-flow management.
The components were: forecasting your cash-flow, evaluating terms with your trading partners and having a good system to enforce payment discipline from your customers. They are essential to improving your cash-flow and making your balance sheet healthier.
Here are three best practices that help you achieve a stronger balance sheet:
1. Full Visibility
In order to have full visibility you must be able to see if your invoices have been sent, received, read, queried and resolved. A real-time tracking system allows you to trace all invoices from the moment they’re sent up to the time that payment is received. This means that you can deal with any invoice issues or queries as they arise and speed up the dispute resolution process. Continue Reading…