Foreword

Chapter 1
Why all the fuss
You must consider cash flow management a daily task, and that involves tracking several systems simultaneously. There’s no one-step solution.

Chapter 2
Analyzing your current situation
Diagnose cash flow threats by comparing your financial results to averages in the trucking industry. Once you review all the components of your cash flow system, you will know which need fine-tuning or overhauls.

Chapter 3
Understanding the cash flow statement
You’ll be in better shape to diagnose the sources of your cash flow problems when you learn to track your company’s three basic sources and uses of cash: operating activities, investing activities and financing activities.

Chapter 4
Understanding cash cycles
Measuring the time between spending cash and receiving a return on that investment is crucial to sound cash flow management. You'll be better prepared to anticipate and meet cash needs, because you can only manage what you measure.

Chapter 5
Forecasting cash flow
Anticipating your availability of cash on a weekly basis helps keep you out of trouble, especially when you are growing. Forecasting is a difficult skill but worth the effort.

Chapter 6
Accelerating cash collections
You can generate more cash without dispatching a single truck by speeding up collections on your receivables. Eliminating wasted time at either end of the process is relatively easy and can cut many days out of your cycle.

Chapter 7
Timing disbursements
Your goal in managing the payables cycle should be to hold on to your cash as long as possible while maintaining a good credit rating. Delaying isn’t difficult if you can keep from spending money earlier than you need to.

Chapter 8
Improving profitability and reducing waste
Nothing beats a cash flow problem like a good business plan. Sound management practices are the foundation of healthy cash flow.

Chapter 9
Handling cash emergencies
Sometimes you have no time for a thoroughly planned system – you must act immediately. The first step is to admit responsibility and then move toward marshalling the resources you need to come back from the brink.

Chapter 10
Installing adequate controls
Don’t overlook the possibility – however remote it seems – that your cash flow troubles stem from illegal activity, such as fraud and embezzlement. Work to reduce the opportunity for someone to steal from you.

Chapter 11
Reports on cash forecasts
Cash flow forecasting should become as routine in your company as regular fleet maintenance, but it doesn’t have to be complicated. Start with disciplined daily accounting and use annual and monthly budgets.

Chapter 12
To factor or not to factor
Factoring has its place, but it’s not a cure-all for a poorly managed company. Learn the risks and, should you choose this path, how to get the best deal. But don’t view factoring as a long-term solution if you can solve your cash flow problems internally.

Chapter 13
Finding the right loan
Learn the secrets of proper borrowing and you may solve some cash flow problems that originate in misunderstanding asset financing. Match the loan terms with the life of the asset for the best results.

Chapter 14
Improving banking relationships
Lenders can be your best friend or your worst enemy. Adopting their view of your company can help you with good cash flow management.

Chapter 15
Using idle cash better
If you manage your cash well, you’ll always have some lying around. Don’t waste an opportunity to generate still more cash by maximizing bank interest, discounts and long-term investments.

Chapter 16
Developing a cash management system
Use your cash flow management skills to develop a comprehensive cash management strategy. It will take your entire company team to help you reach the right combination of cash management practices that’s right for your firm.