Cash Flow Management -New Survey

While the all too familiar phrase ‘It’s the economy, stupid’ has been so widely used in our political culture in a recent survey conducted by TD Bank there’s a new phrase ringing true for CFOs.

It’s the cash flow, stupid.

With over 69% of CFOs and other cash flow managers that were surveyed at mid-sized businesses cash flow management was said to be the greatest contributor to their stress. What was surprising was that even though cash flow remained a top concern less than 8% said they plan to cut costs next year.

In fact 39% plan on investing in new technology from projected increases they will receive. Here are some other interesting facts revealed in the survey:

• 78% agreed that it may take two years for the economy to recover
• 45% noticed a sales increase over the past 12 months
• 58% project a sales increase in the upcoming year
• 55% rate interest rate unpredictability as a major concern
• 52% agree that access to credit is a major challenge
• 22% said the best decision made in the past 12 months was preserving cash

While the majority of those surveyed were optimistic and expect the road to recovery to be a little rough there were important lessons they took away from the recession.

First, it was minimize company debt loads to much more controllable levels. Second, it was put a stronger emphasis on cash management. Finally, it was avoid bad investments and put a plan in action to recover from the bad ones made.

Regardless of whether you own a small, mid-sized or large business the challenge of navigating your company’s finances through one of the worst economic periods since the Great Depression truly puts your company’s financial management to the test.

What lessons has your business taken away from the recent economic downturn?

Source: http://www.charlestonbusiness.com

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About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.