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AS A CEO DO YOU KNOW

Who owes you money?

In the companies I’ve led, a single individual has overseen accounts receivable. I’ve typically insisted that the individual is someone who is cheap, organized, and relentless in following up. I get a report every week of all ARs in buckets based on days: 30, 60, 90, 120, and 120-plus. This is typical. What is not typical is that I recommend every CEO be involved in managing the calls and collection of monies owed over 90 days. My team knows that if an account is getting close to being over 90 days, they need to provide a file on the calls, contacts, and general correspondence in this collection. I personally collect every account over 120 days because they will probably go to collections. This is when your skills in dealing with senior owners and leaders will be put to the test.
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AS A CEO DO YOU KNOW

Your daily cash position?

Cash is the lifeblood of your business, and knowing your daily cash position provides you with a picture of your business’s overall health in real time. As a CEO, I receive a daily cash update from my financial lead. The very act of asking for this update drives accountability for cash back to your finance team so they can seek answers to any significant cash positions well in advance of you asking them. Know your daily cash position and think about how current changes in the growth of the business are impacting your use of cash within the business over time.