Do your reports show a profit?
Is that cash in the bank?
Shouldn't your profit turn into cash?
Do you want to know why?
Every shift, your people are making hundreds of small decisions just to keep things moving: expediting a job, fixing a part, working overtime.
Often, these decisions never show up in the reports you use to run your business.
There's a gap between what happens on the floor and what shows up in your reports.
That's where the money goes.
But you can't see it. So you don't know it's there, or where to look.
You see the symptom and know what makes it show up. So why doesn't it go away?
Cash is always moving in your business: through jobs, materials, labor, shipments, invoices, and collections. As it moves between areas, some of it slips out of view and stays there.
Reports typically show what's happening inside each department. They don't always show what's happening between them.
We start with the problems that are bothering you the most. We'll discuss how you're currently working around them.
If you want to continue, we'll put numbers to the problems. You will finally see where your cash is and I will show you 3 ways to recapture that cash.
The AR aging showed $300K more than 90 days past due. The CFO was certain the customers hadn't paid.
They had.
The cash was sitting in a suspense account — received, but never matched to the invoices. The aging only told part of the story. We had to pull three other reports to get the truth.
$300K that was already there.
The inventory report showed $250K in defective merchandise.
The assumption: write it off.
The system had one code for everything returned or damaged — "D" for defective. A ruined table looked exactly like one that just needed a leg.
Only 20% was truly defective. The rest was undamaged, needed parts, or needed only a minor repair.
Three new codes later: $300K in profitable sales.