The Manufacturing Industry is Expected to Grow- Can Your Cash Flow Keep Up?

cash flowThe MAPI foundation report U.S. manufacturing will grow slightly faster than the general economy in 2015 and 2016. While industry growth forecasts are always good news for manufacturers, it does not always translate to success for individual businesses. To take advantage of the growth in your industry, you need to have a growth strategy and all growth strategies need one thing, cash flow.
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Improve Manufacturing Cash Flow: Why Invoices are Paid Late in the Manufacturing Industry

As a manufacturer your focus is not on accounting, it’s on producing product, managing inventories, bringing in new business, and on the other important activities that drive revenue. While accounting may not be your greatest focus, it’s extremely important to pay close attention to effectively managing accounts receivable.  Why? Because companies who focus on collecting what they are owed as quickly as possible are able to increase manufacturing cash flow, which then allows them to invest in R&D,  buy capital equipment, offer competitive prices, and take other important steps toward growth.

Late payment is common in the manufacturing industry, but there are ways to change that in your business.  First you need to know why customers are paying you late to begin with.
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