Discussion Board 3 Post
Robert Rivers
BUSI 530
As the CFO you have a few options when it comes to increasing cash flow for
your company. The new product is too far away to begin to capitalize on in the form of
money from pre order sales but the product, with the right marketing could attract
investors and raise venture capital for the product and the company. Leasing equipment
instead of buying can also help alleviate tying up too much cash. Leasing can essentially
cost more for the equipment but can also be considered a tax deduction. Another viable
option can be to improve accounts receivable. The basic idea is to improve the speed with
which you turn materials and supplies into products, inventory into receivables, and
receivables into cash . A couple of ways to accomplish this would be deposit payments,
early pay incentives, and a lean process to decrease average receivable time.
On the other end of that is accounts payable and there are a couple of ways that
can maximize cash flows for the company. Holding debt, while not biblical sound, has
advantages in business. The bible says, “Pay to all what is owed to them: taxes to whom
taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed,
honor to whom honor is owed” (Romans 13:7). As the CFO of this company you will
definitely pay your bills and keep your accounts payable in good order. Paying accounts
at the end of their billing cycle keeps the account in good order and also allows your
company to maximize cash on hand for any given period. During these things will help
the company survive until the new product is launched in two years.
