Cash (2 of 3): Speeding Cash Flow/Cutting Costs - John M. Leask II CPA/ABV, CVA


Part 2 of a 3 part series

Warning Signs:

    • Significant decrease in working capital.
    • Significant decrease in current ratio.
    • Significant decrease in quick ratio.
    • Sudden unexpected decrease in cash.

  • Cash below projected levels.
  • Delay in paying bills.
  • Lost cash discounts.
  • Excessive bank charges.


  • Deposits should be made daily to boost cash flow.
  • Deposit earlier in the day to boost cash flow.
  • Cash in on interest bearing “sweep” checking accounts.
  • Work with the bank to establish working balances that minimize bank charges.
  • Keep bank charges reasonable.
  • Use a monthly cash flow analysis to forecast financing needs.
  • Use bank “lock box” to maximize interest on deposits.
  • Use bank “lock box” system to speed cash flows.
  • Use wire transfers to speed transfers between banks.
  • Use one bank with wire transfers between branches.
  • Use spare cash to pay down lines of credit.
  • Invest idle cash.

Back to The Business Doctor

>>Cash (1 of 3): Preventing Loss
>>Cash (2 of 3): Speeding Cash Flow/Cutting Costs
>>Cash (3 of 3): Raising Cash/Increasing Cash Flow