Tight Cash Flow
Subcontractor
The Situation
- Subcontractor with a seasonal business model doing about 3M of revenue
- Struggled with cash flow, forced to use Line of Credit to meet payroll during ramp-up
- Owner was not getting timely information to monitor performance of entire company
The Solution
- Created custom reports including dashboard to monitor performance and cash forecasts to predict shortfalls and surpluses
- Helped client understand cash flow cycle and how to avoid the cash "crunch"
The Results
- Shortened A/R collection period by 8.7 days
- Revenue growth of 37.1%, net income increased by 149%
- 2 yr. average Return on Investment for client of 1,125%
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