Leading Question

>>Like experts in other areas of business, certified public accountants say that focusing on customer service is critical. But here’s how it relates to a company’s cash: As soon as you see a pattern of customers delaying payments, contact them to set up a payment plan or offer other assistance that paves the way to you getting paid.

“This is the perfect opportunity to get in front of your customers and make sure that your customer-service level is to their expectation,” says Mark Koziel, a senior manager for the New York-based American Institute of Certified Public Accountants. “We’re teaching clients to have those frank discussions with their customers so they can anticipate that a little sooner.”

The sooner you start collecting on bills, the sooner you will get the money, says John Reed, a principal with Minneapolis-based LarsonAllen, an accounting firm with offices in Fort Myers and Naples. “Accelerate the process and shorten the cycle when you start making those phone calls,” he says. “A lot of people have tight cash flows and they’re trying to hold onto their money as long as they can.”

If businesses haven’t reviewed their 2009 cash flow needs and taken steps to cut operating expenses and discretionary spending, they should. It’s something even accounting firms have done. The industry has experienced layoffs and is being proactive in helping customers plan for the year.

Reed says many of his clients have determined a break-even point so they can get by on a weekly or monthly basis. “They need to pay more attention to their numbers now than they did in the past,” he says.

These and other budgeting steps also will position companies for success in the post-recession growth, Koziel adds.