Many business owners are left scratching their head when it comes to cash flow, thinking that as long as they are making a profit then they are fine.

Unfortunately, what constitutes as profit versus cash are often confused.

Profit is simply the amount of money you have after subtracting expenses from your revenue. It doesn’t account for where your money is going.

To understand your business’ cash flow, other financial factors need to be considered, such as accounts receivable, inventory, accounts payable and so on.

Your goal as a business owner is to generate a positive cash flow. This means that the cash coming into your business exceeds the amount leaving due to expenses.

It seems simple when broken down, but many business owners overlook this important distinction that contributes to generating positive cash flow. What seems like simple mistake can lead to serious miscalculations that will leave your business struggling for cash.

If you find yourself constantly juggling expenses or if you’ve sweated over how you would take care of next day’s payroll, then you may be in need of cash flow management services.

Why Your Business Needs Cash Flow Management

Few things make a business owner’s blood run cold like the words “negative cash flow”.

If you’ve never heard the phrase but are familiar with the feeling of struggling to make payments with your business income, then you understand the sentiment.

It’s estimated that most businesses fail due to cash flow mis-management.

Essentially, while most business owners may know their final cash amount at the end of the fiscal month or quarter, they may not know where all of their money is going.

Having a loose handle on your cash flow can lead to overspending in some areas or unforeseen circumstances that may require cash you don’t have on hand.

Proper cash flow management helps business owners anticipate their expenses and avoid a cash crisis that could be fatal for their company. If you’ve ever found yourself in the position of scrambling to make payments with your company’s revenue, then you’ve only had a taste of how devastating the effects can be.

That’s why we are here to help.

How we can Help With Cash Flow Management

The first step in handling cash flow management is determining an accurate cash flow projection, so you can see where your money is going. Depending on your needs, we work with you to develop a short to long term projection that helps you create an effective capital strategy for your business.

And that’s not all we do! Thanks to our financial expertise, we also provide other services including:

  • Consultation on obtaining proper lines of credit
  • Techniques to accelerated cash collection
  • Development for effective collection policies
  • Development for effective payment policies

Don’t spend another moment worrying about your company’s cash flow management. Contact us today to schedule a consultation.

Contact us today for more information.

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