Keeping the Cash Flowing
Cash flow is king at the end of the day and today’s topic is all about it! Keeping the cash flowing is part two of my cash flow series on “By the Numbers”, last week’s episode F4.007, Secret CFO Strategies to keep you in the black, was the introduction to today’s conversation. We are going to dig deeper today and tackle strategies to grow your bottom-line and ultimately put more cash in your bank account.
Show Objectives - The Why
The number one reason businesses and companies go out of business because they simply do not have any cash or resources to be a going concern. Going concerns are businesses that will operate for a year beyond a reporting period. Everyone in business has to be able to know if they are going to exist first and be profitable second.
The major determinant of whether or not a business is going to last is predicated upon working capital, funds or resources to keep your business going when times may be lean. Many businesses run on an accrual basis, in which they provide goods or services in advance of getting paid and cash in the bank from the customer or client.
During these uncertain times we have to be prepared when our accounts receivable balances are growing past 90 days or more! The money is coming but it takes longer all the while our accounts payable is growing and the vendors are calling seeking payment and payroll is next week! Help is on the way with today’s episode, “Keeping the Cash Flowing”.
Key Issues - Owner/Manager Perspective:
What You Need to Know:
Cash Flow Secrets: 7 Highly Effective Master Strategies to Grow Your Cash, Build Your Profits and Create Lasting Business Success, by Sandy Oluwek.
What You Need to Do -
Implement all or some of the master strategies that support cash flow growth by increasing profits, putting idle assets to work and/or establishing or using debt.
Resource link: Amazon.com: Cash Flow Secrets: 7 Highly Effective Master Strategies to Grow Your Cash, Build Your Profits, and Create Lasting Business Success eBook: Oluwek, Sandy: Kindle Store
Previous: Episode F4.007 Secret CFO Strategies to Keep You in the Black
Next: Episode F4.009 5G Your Business Finances
Written by Celia L. Powell CPA
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