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%
-Recent Articles-
A Q&A with Jeff Heybruck, CEO, Lucrum Consulting Q: What is Class Tracking In QuickBooks? A: In QuickBooks, “Class Tracking” is a feature that...
By: Jeff Heybruck Retainage, also known as holdback, is a common construction industry practice where a percentage of a project’s payment (usually between 5%...
By: Jeff Heybruck When was the last time you looked under the cushions in QuickBooks? You’re not alone. The majority (over 60%) of QuickBooks...