Cash Management

Cash management is the collection, concentration, and disbursement of cash for the purpose of maximizing the availability of cash in such a way as to avoid the risk of insolvency of the business. Cash management tools include effective control of the company’s level of liquidity, its cash balances, and its short-term investment strategies.

Cash is the lifeblood of a business. Competent management of cash is essential for success. Cash flow problems mean that there is no margin of safety.

Lanter, Leonardo & Levy’s team of professionals have found that its most successful clients follow the following practices, in good times and bad:

  • Realistic projections
  • Closely monitored collections and disbursements
  • Established effective billing and collection measures
  • Adherence to strict budgetary restrictions
  • Concentration and control of cash to provide greater investment opportunities

As part of establishing a strong cash management system, Lanter, Leonardo & Levy will help you determine your company’s optimal cash balance, which is the precise amount needed to minimize costs, provide liquidity to pay bills on time, and provide a margin for emergency purposes.

Some of the efforts that have been used effectively in tough times include:

  • Creation of a realistic cash flow budget charting the company’s financial situation for both the short and long term
  • A redoubling of collection activities
  • Offering small discounts for prompt payment
  • Closely monitoring and prioritizing cash disbursements
  • Contact creditors to negotiate better terms or mutually satisfactory arrangements, enabling the business to survive its cash shortage
  • Liquidate superfluous inventory
  • Assess areas where expenses may be cut without permanently harming the business

These are tough times for the construction industry in Florida. Owners need to sit down and undertake cash management analysis to address shortfalls, increase revenues, and cut spending — before it’s too late. The business advisory team at Lanter, Leonardo & Levy can help.

The best strategies for business and personal growth and success are specific to your business and personal situation. Your plan must be tailored to fit your unique circumstances. Contact Lanter, Leonardo & Levy for a no obligation consultation on building and preserving the company and wealth you have worked so hard to achieve.

Call Alex Leonardo or Rick Captain today at 561-998-7770

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