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For Businesses Small to Large: Cash Collection Strategies to Get the Cash Flow Flowing
Do's/Don'ts 
Tags: Cash Collection, strategies, cash flow, Money, cash, more, rich, business, company, help
December is typically the month in which cash collections from receivables is the lowest. This puts added stress on business owners as they try to meet the cash needs of their company, survive the Holidays and try to collect bills without being branded with the "Scrooge" image. Some suggested strategies to collect cash might include:
| | Collection Goal - Tell the staff the dollar goal in cash collections that you expect to achieve for December. Be positive, but firm about the collection goal. |
| | Specific Identification - Have the staff give you a detailed report of the cash they expect to collect from specific customers by December 31st in order to achieve the collection goal. Communicate your concerns about the collections to staff. Help them understand the importance of collecting the cash without hurting the relationship with the customers. |
| | Daily Reporting - Ask the staff who report to you (or a key employee) the results of the collections each day of the month in December. Any concerns about the collection goal should be communicated daily. |
| | Internal Scheduling - Request that your staff give you a calendar of when they will be gone from the company during the month of December. Make sure someone is available to collect cash each day the company is open during the month. Make sure the receptionist knows who is available to take calls from customers that have questions or concerns about their invoice. Additionally, have the staff call the customers to find out if there are any calendaring problems with the staff of your customer during December. There is no sense in calling to collect money if your customer's staff is on a scheduled vacation - know the vacation schedules and plan for collections accordingly. |
| | Performance Bonus - Give some consideration to giving a bonus to your staff if they meet or exceed the cash collection goal. This is a win-win situation for both your company and the staff as your employees earn some extra Christmas money while your company has sufficient cash in the bank to operate |
Lister:
Heather
Source:
B2B CFO
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