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3 thoughts on “ Work In Progress (Chief Steve Mix) - Cash Flow (2) - Work In Progress (Vinyl) ”
Sep 06, · Cash flow is difficult enough to manage on profitable projects—it’s simply not good business to attempt to make an unprofitable project work. Work in progress (WIP) management: Keeping a close eye on your projects in progress is absolutely necessary if you’re going to manage your cash flow .
That is days, on average, that jobs are in progress prior to invoicing or cash in-flow. In other words, your business needs to cover the cash-flow requirements for a day period. This is a very sensitive ‘Driver’ in relation to cash-flow in a business. Any movement upwards in this ‘Driver’ can have severe impact on cash-flow.
Your cash flow projections for a project should take into account late payments from clients on your submitted invoices in order to help you calculate cash flow. Usually it's best to call the client a week before you plan to submit an invoice so they know to expect it and to address any potential issues that could delay payment of the invoice.