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Cash flow is the lifeblood of any small business. While it’s ideal to run a business where you get paid upfront for every job, in the trucking industry that’s just not how it works. Instead, it’s common for trucking companies to deliver a load and then get paid 15, 30, 60, or even 90 days later.  In the meantime, there is fuel to be bought, and bills to be paid. And trying to keep track of who has paid, and… Read More

If your small business has inventory, knowing how fast it is selling will help you better understand the financial health of your business. Here’s why inventory turnover ratio is important and how to calculate it.  What Is The Inventory Turnover Ratio? The Inventory Turnover Ratio, or ITR (a.k.a. stock turnover ratio) measures the number of times a business sells and replaces its inventory over a certain period.  A higher turnover ratio means that a company is selling more and replacing… Read More

If you’re worried about the potential impact of a recession on your small business, you’re not alone. Business owners are bracing for an economic downturn, with no idea when that may happen or how bad it may be. Eight in ten small business owners believe the economy will enter into a recession this year, according to The CNBC|SurveyMonkey Small Business Index Q2 2022 survey.  CEOs of larger businesses surveyed by The Conference Board were slightly less pessimistic. Nearly 60% said they expect the… Read More

A small business needs cash to operate, and that cash often relies on your customers paying you in a timely manner. That’s where the days sales outstanding (DSO) formula comes in. Your business’s DSO value tells you the average number of days it takes to get paid for a credit sale. In this article, we break down how to calculate DSO and why it matters for your small business. What Is Days Sales Outstanding (DSO)? Days sales outstanding is a… Read More