How to shorten the cash cycle in a service business

Most service businesses treat cash flow as a collections problem. It is usually an invoicing latency problem.

Measure the gap between work completion and invoice issue. If it is more than three days, that is where your cash is trapped.

Invoicing straight from approved timesheets or completed job sheets removes the batching habit entirely.

Add online payment on the invoice itself and average days-to-pay typically falls by another week.