According to a recent study, the average small business only has 27 days of cash reserves on hand which implies that there is a possibility of serious cash flow issues when a client is tardy with their payment. Dealing with unpaid invoices can be tough and to handle all aspects of the unpaid invoices, we need to take care of few things. First, there is a need to avoid working with clients who don’t pay on time. There must be a clear understanding of the terms and conditions so that no client can take benefit of the doubt. Considering mobile invoicing make the things more convenient. There is a need to handle the issues in a professional and systematic way. If there are cash flow problems due to outstanding invoices, the option of invoice financing can be chosen. Approval for invoice finance is a quick process and hence can be useful at the time of crisis. Unpaid invoices result in a lot of time wasted chasing clients for payment. However, there are ways to get back the money from the clients, keeping the business financially sound. 

Read more at: https://www.business2community.com/finance/5-ways-deal-unpaid-invoices-2018-02022443

Enterprising value(EV) is a better measure of a firm's real market value than market capitalization as it takes debts and cash reserves into account. Market capitalization does not give a clear idea of the amount an investor needs to buy a firm. If a firm has cash reserves, the buyer is incurring lesser costs than the amount he is paying and it is opposite when the firm has debts. EV is the sum of a firm's market capitalization and its net debt. The drawback of EV is that it does not consider the interest costs and income over time. So EBIT is necessary despite the fact that EV gives a rough idea of the true value of a firm. Read more at: http://value-picks.blogspot.in/2017/05/using-enterprise-value-to-compare.html?m=1