December Cash Flow: Why Deposits and Collections Decide Your Year

December is feast or famine. Either you collect on November's installs and end the year flush, or your AR pile becomes a January problem. Here's the playbook.

Tighten deposit policy

50% deposit on every kitchen, due on contract signing, no install scheduled until cleared. Anyone pushing back is a credit-risk customer.

Collect balances at install

Run the credit card before the truck leaves the driveway. Net-15 from a homeowner becomes Net-90 by Valentine's Day.

Run the AR report weekly

Anyone over 30 days gets a phone call (not an email). Anyone over 60 days gets a registered letter. Anyone over 90 days goes to collections.

December freeze

No new credit terms in December. Cash, card, or financing only. The collection holiday in Q1 isn't worth the lost cash flow.

The mindset

Cash in the bank on January 1 is what funds January's payroll. Don't sentimentalize unpaid invoices.