Electrical Association

Cash is King

Credit Cards

• Get the money in the bank the next day
• Reduce staff time processing checks
• Avoid late payment and collections work

Invoices & Collections

• Make sure your invoices are going out timely and accurately.
• It is good to have automatic reminders and procedures to:

• Send out past due notices automatically if possible.
• Remind you to make immediate contact when due date passes.
• Turn bad debts over for collections.

Vendors & Payables

• Pay twice a month and have employee in charge of purchasing check the accuracy of the invoices.
• Use discounts offered for early payment.
• Negotiating longer terms with vendors is easier when payment record is prompt.
• Automate your payment to the degree possible to avoid late fees.

Purchases

• Delay capital purchases for as long as possible.
• Invest in planning, training, software and the like that strengthens your competitive advantage in the market place.

Banking

• If you have consistently worked with only one banker, think about starting up a business relationship with a second bank.