Tech Tip #49 – Expense Leakage Can Hurt Your Cash Flow. Avoid It!
It doesn’t matter how you get paid by your clients, you or your firm is going to pay for your expenses on your own first and then get reimbursed down the road. Problems arise when firms fail to record or claim their expenses. Expense leakage is especially more prevalent for indirect (or soft) costs and when charges are paid by credit cards. If you aren’t claiming them, you can’t be paid for them. Make sure you record and claim expenses as they occur to keep the cash flowing! Read our whitepaper Top Cash Flow Management Strategies.