 an accountant, you not only file tax returns on time or correct your accounting books, but you’ll also avoid future penalties. All these factors contribute to you shortening your cash conversion cycle.
There you go. We hope you find these tips on how to improve the cash conversion cycle helpful for your business.
All these tips, when working in sync, will help your business achieve a favorable balance and allow you to improve your cash conversion cycle.
TL;DR: The cash conversion cycle measures how fast a company converts cash on hand into inventory and back into cash. It can even sometimes be a factor the suppliers use in determining whether to extend credit or not.
A good cash conversion cycle is a short one.
Hall Accounting Company is interested in working with small business customers to improve the cash conversion cycle through technology-driven accounting automation.
Our custom accounting solutions include managing your business’ finances, making sound investment decisions, and preparing your taxes. See Our Full List of Services.