Tight Cash Flow

Subcontractor

Tight Cash Flow

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%

Leading Confidently

means having a plan

Become a Success Story
Recent Articles
Fractional CFO vs Interim CFO vs Part-Time CFO

Do I Need a Fractional CFO, Interim CFO or Part-Time CFO? What’s the Difference?

by: Lucrum Staff As a business scales, it reaches a point where more financial expertise is needed than existing resources can provide. …

Tempering Sales Optimism With Reality

When To Politely Turn Down A New Business Opportunity

By: Jeff Heybruck New business opportunities are, for good reason, exciting. But wise business leaders are able to take off the rose-colored …

QuickBooks Online Disaster Stories

QuickBooks Online Migrations Gone Wrong: 3 Cautionary Tales

by: Lucrum Staff With the approaching end of QuickBooks Desktop, more and more organizations are considering Intuit’s cloud-based QuickBooks Online. Our team …