Question

• Research the best ways a small business manager can stay on top of cash flow in operating a business. Select three (3) articles that give practical suggestions as to the best practices a manager can use to stay on top of cash flow and money issues. • Synthesize and evaluate the articles as well as those in the classroom, to find ways to manage money as well as pitfalls to avoid. • Using these points as a guide, create a checklist that you or any manager can use weekly to stay on top of the company's financial resources. For instance, what is the best way to control accounts receivables. Be sure to explain why you chose the points to include on the list. • Try not to just pick the most common ideas; look for those that are different as well.

Answer 1

Three key essential elements of any cash flow analysis may consist of

• Accounts payable: What you as vendor owe to your suppliers
• Accounts receivable: What clients or customers may owe you
• Shortfalls: You predict not to have those, but those may happen

It may also include:

• Offer discounts to cliemt/customers that quickly pay their bills
• May enquire from customers to make deposite payments when the order are taken.
• May need for new noncash customers the credit checks.
• Account receivables to be tracked in order to identify and not to have slow-paying customers.