Episode 20: Keeping Cash Longer | Cash Flow Series Part 4 of 6

Profit on paper does not always mean cash in the bank.In this episode of Trade Finance in Ten, Robyn continues the cash flow series with a practical look at Days Payable Outstanding, or DPO — how long it takes your HVAC, plumbing, or electrical business to pay vendors. If customers are paying you slower than you are paying suppliers, your company may be floating the gap.Robyn explains how contractors can improve cash flow by reviewing expenses, managing owner draws, controlling purchases, watching truck stock and fleet costs, negotiating vendor terms, separating tax money, and building a simple weekly cash flow forecast.You will also learn how to use a modified cash conversion gap — DSO minus DPO — to understand whether your business is collecting cash before or after bills are due.Use the free Cash Calculator for HVAC, plumbing, and electrical contractors to find your cash flow timing gap:https://myhvacoffice.com/cash-flow-hvac-plumbing-electrical-contractors/Keywords: HVAC cash flow, plumbing business cash flow, electrical contractor cash flow, DPO, DSO, cash conversion cycle, contractor cash flow calculator, vendor terms, accounts payable, trade business finance.