Re:Losing My Perfect Job
by everdev on Monday April 08, 2019 @10:18AM
(#19605402)
When I ran a business I liked to have 2 payrolls worth of cash set aside. So, if a customer was late paying by 3 weeks we'd still be OK. This turned out to be a pretty cautious approach and we were never in danger of missing a payroll (or the following one).
Keep in mind payrolls are for work that's already been performed.
Having enough cash set aside for the work that's been performed plus a month of future work is having 3 payrolls worth of cash set aside at all times.
I could see it working if all companies had to do it, but in a scenario of two identical companies where one can spend more freely they're probably more likely to grow.
Keep in mind payrolls are for work that's already been performed.
Having enough cash set aside for the work that's been performed plus a month of future work is having 3 payrolls worth of cash set aside at all times.
I could see it working if all companies had to do it, but in a scenario of two identical companies where one can spend more freely they're probably more likely to grow.