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hey guys Nicole here with momentum accounting and in this video I am going to be talking about cancellation Clauses why you need them and how you can actually use them as a cash management strategy if you are performing services for a portfolio of clients on a recurring basis you should always include at least a 30 60 or 90 day cancellation clause in your contract so the larger the contract and the larger the impact it would have on your business if that customer left the longer the cancellation Clause should be so lets say as an example that you sign a new client for ten thousand dollars a month sweet right so because of the size of the contract you actually have to go out and hire an employee to service that work so things are going really well the employees working out but then four months after the client signs you find out that they sold their business and they dont need your services anymore so all of a sudden overnight your Revenue drops off ten thousand dollars a month so wha