Businesses need cash and cash flow to operate, so monitoring our accounts receivable (cash inflow) compared to our accounts payable (cash outflow) is critical.
We are still working with the company from the previous report. This company is a retail/distribution company that sells from their website, www.amazon.com, using an outside sales team (for bulk sales) and a brick and mortar store.
To improve cash flow, this company needs to evaluate how many times the accounts receivable is being paid and regenerated during the course of a year, and how many times the accounts payable will be paid and regenerated during the course of a year.
Monitoring these numbers gives a more accurate ...