Cash inflows are the movement of money into your business. Inflows are most likely from the sale of your goods or services to your customers. If you extend credit to your customers and allow them to ... |
The cash conversion period measures the amount of time it takes to turn the sale of your product or service into cash available for cash outflows. You might say the cash conversion period looks at ... |
Your customer's decision to purchase your product or service is the start of the cash conversion period. Allowing your customers to make their purchase ... |
The decision to extend credit to your customers is based on your credit policy. Depending on your credit policy, the time involved in the decision making ... |
As the name implies, this is the step where you actually fulfill the customers' orders by delivering your products or services. In some businesses, this may involve manufacturing a product before it ... |
In this step of the cash conversion period, you issue an invoice (bill) to your customers or clients for the ... |
Diggers Plus is a small construction company specializing in excavating, trenching and other building site preparation construction. A typical project for the company takes one to two weeks to ... |
For most businesses, the time it takes to collect on a customer's account is generally the step requiring the most amount of time in the cash conversion ... |
Payment and deposit is the final event in the cash conversion period. This step involves looking at the way you receive payments from your customers, and ... |
Some of the delay in the postal service is the result of having your mail delivered directly to your place of business. This type of delivery entails some extra sorting so that your mail gets into ... |
