Which of the following is a method for companies to increase cash flow?

Improving collections is a method for companies to increase cash flow because it directly affects the money coming in from customers. By enhancing the effectiveness and efficiency of accounts receivable processes, companies can ensure that payments are received more quickly and reduce the overall days sales outstanding (DSO). This means the company has access to cash sooner, which can then be used for operations, investments, or to meet financial obligations.

Collecting payments promptly not only protects the company's liquidity but also reduces the risk of bad debts. This is particularly important in maintaining a healthy cash flow, as cash is vital for day-to-day operations and for taking advantage of other business opportunities. In contrast, the other options may not directly lead to improved cash flow or can have delayed effects on liquidity. For instance, increasing budgets might lead to higher expenses without immediate revenue generation, focusing solely on long-term projects might tie up resources for an extended period, and expanding the workforce could increase payroll liabilities before the benefits of greater productivity are realized.