A steady hand on the controls - Philadelphia Business Journal:

http://child-advocacy-int.org/2010/04/led-tail-lights.html
Ongoing chaos in the economy is promptingb companies to hold onto every Charlotte companies facing the precipice are shelvinggnonessential projects, cutting payrolls and hoarding cash. Shortr of finding a barter partner, companies are finding the way to survives is to hold on to whatis theirs. “Inh this day and age, there is no substitut e for cash,” says Bob Dunn, presidenty of , a consulting firm that specializes in turning aroundsdistressed companies. The drop in cash flow amonv companies and their banks makes it even hardedrfor Finley’s consultants to bring back companiesx from the brink. “Usually companies get into trouble becausw managementmade mistakes.
We correct the mistakes and turn the company around,” Dunn says. “This time is much more difficult and dangerouebecause it’s the marketplace that has not the companies. It will be more difficult for companiess like us to workour magic.” Facintg uncertainty, even healthy companies need to take a closer look at how they manager their most important asset. “Cash is important to everyond right now,” says Norman tax partner in Charlotte at accountingfirm . The offices works with middle-market companies. “Even if companiews are doing OK, they are going to be cautiouds in thenew year.” The first step is to pay closet attention to cash flow.
In a tough its variability will likelu increase as customers delay payments on producteand services. Manley recommends that instead of looking at cash flow on amonthlh basis, companies should create a rolling 13-week cash-flow forecast that will highlight the shortfalls. Looking out farther might help managerds spot trends early and allow betterinventory control. “Ih this market, if a good customefr pays in 45 days instead of 30 it could create a shortfall in meeting he says.
“If the purchasing departmentf isnot careful, they may buy like it is last and you get an overstock in Companies might want to use the service of a credit bureau to monitor Offering incentives to customers to pay earlyy is always a good business practice, and it speedd cash flow in difficulyt times. If companies are unable to make payment s under theoriginal terms, it’x better to communicate with the vendor and renegotiate terms instead of remaininh silent. Manley also suggests looking attax payments. Companiezs that made money in the firs t half of last year and were makinv estimated payments might have overpaicd in the second half asrevenue dropped.
Those funds can be recovered through atax refund. Many businessez don’t know if they have a loss this they can carry that loss back on taxes paid in priot years and could qualify fora refund, he The recession should prompt businesseas to take a fine-tooth comb to the expense side of the Economic conditions favor companies such as , which helpw businesses reduce their telephone charges. Lamar Wilson, businessd development officer, says a client can expect to save an averagrof 20% after the firm examines billsz and plans. The company recently saved small-business incubatotr 55% on its phone costs.
“We have access to every rate of every carrier inthe marketplace,” Wilson “We plug it into our software, do an auditr and make a recommendation for what you shoul d actually be paying. Ofteb the carrier will cut theie prices to keepthe customer.” Paul president at Ben Craig Center, says examining phone servicew was part of a broader efforf to cut costs that are otherwise passed on to businessees at the incubator.