A PR agency came to RAH!CFO, telling us they were having problems with their cash flow. When reviewing their Balance Sheet, we noticed they had over 20% of their annual sales in open receivables from their customers!
The team here at RAH!CFO was able to help improve our clients cash position by changing their billing practices and contacting the key customers who were responsible for more than 60% of the open balance. Now, receivables are paid within 45 days and we are working on improving their debt management in an effort to further improve their bottom line.
Are you collecting all your receivables in 45 days or less from when you completed the work?