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CFO Techniques pp 161-171 | Cite as

Managing Receivables and Payables

  • Marina Guzik

Abstract

My grandfather used to say, “Live within your means and don’t spend the money you don’t have in your pocket.” On the surface it may seem like an old-fashioned point of view, but it is essentially the golden rule of liquidity, applicable to individuals and business entities alike. Let’s face it, if everyone lived by this precept, the global credit crunch wouldn’t have happened. Keeping expenses below revenues and collecting receivables before paying bills are two strategies that together guarantee positive cash flow. Of course, it is easier said than done.

Keywords

Cash Flow Credit Score Credit Insurance Credit Line Sales Department 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Marina Guzik 2011

Authors and Affiliations

  • Marina Guzik

There are no affiliations available

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