Managing Cash Flow

342 Cash Conservation Checklist
ASSETS Yes No N/A
9. Factor receivables if not collateralized. _____ _____ _____
10. Use collection agencies if necessary. _____ _____ _____
11. Implement penalties for late payments. _____ _____ _____
12. Get cash payment for invoices where
cost of invoicing exceeds amount of the invoice. _____ _____ _____
Inventory
1. Stay out of the inventory business as much as possible. _____ _____ _____
2. Buy for customer orders rather than for stock. _____ _____ _____
3. Use vendor consignment inventory. _____ _____ _____
4. Negotiate blanket purchase orders
with flexible delivery schedules. _____ _____ _____
5. Consider effective disposal of obsolete
inventory for cash. _____ _____ _____
6. Stratify your inventory (ABC system) and control
strata independently. _____ _____ _____
7. Improve inventory turns.
8. Consider unloading dead or dying inventory for cash
(e.g., fire sales, parking lot flea markets, etc.). _____ _____ _____
9. _____ _____ _____
Prepaid Expenses
1. DON’T!! _____ _____ _____
2. Get your deposits back. _____ _____ _____
3. Avoid salary advances. _____ _____ _____
4. Consider monthly, quarterly, or semiannual insurance
premium payments rather than annual payments. _____ _____ _____
5. Do not overpay or prepay taxes. _____ _____ _____
6. _____ _____ _____
7. _____ _____ _____
8. _____ _____ _____
Fixed Assets
1. Buy what you need, not what would be nice. _____ _____ _____
2. Consider used equipment. _____ _____ _____
3. Rent out extra space. _____ _____ _____