By Domenick J. Esposito
8 Steps to Great
It never ceases to amaze me how lax many small and midsized CPA firms are when it comes to managing their work-in-process and accounts receivable and optimizing their cash flows.
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Sloppy billing and collecting policies often result in lost billing opportunities (i.e., if you don’t bill it timely, clients forget the value you provided and resist receiving a bill 90 days after the work was performed) and for a need to have a relatively large line of credit. Sloppy policies also result in year-end fire drills with clients when partners “beg” clients for cash before the end of the firm’s fiscal year end.