Managing the cash to flow
• Working capital is a metric that represents operating liquidity. It includes current assets such as cash, AR, WIP, minus other current liabilities.
• Getting billings out the door faster and collection of accounts receivable are the most important elements of managing cash flow for the typical firm.
• Reducing your firm’s average collection period begins at home (meaning stuff you can control!), including managing scope, time sheets, reviewing billable vs unbilled time, speeding up the invoice draft/approval process, bringing more NSR in house vs subbing it out, and improving WIP.
THE PRINCIPALS ACADEMY 2022
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