When customers pay you late or maybe not at all, you might find yourself just pennies away from a cash flow shortage – a time when you have more money flowing out of your business than you have flowing into your business and you find yourself unable to pay the bills.
Most experts agree that about 90% of closed businesses fail due to cash flow problems, and overly lax or mismanaged accounts receivable are often responsible for these devastating cash flow shortages.
Implementing a sound system for managing your company's accounts receivable is one major way you can improve your business's working capital and avoid disastrous cash flow shortages.
