Posts Tagged ‘cash flow’

Is Your Cash Flow Ready For Spring?

Tuesday, February 17th, 2015
cash flow - Rea & Associates - Ohio CPA Firm

Cash flow is arguably more important to your company’s success than your bottom line because it takes your past, present and future projections into consideration to arrive at a comprehensive analysis of your financial wellness.

Spring is the season of renewal. It’s the time of year when we emerge from our dens to enjoy warmer weather, the melting of snow and an abundance of greenery as nature appears to come alive. Spring is also an opportune time in the business world. And before we lose ourselves in the hustle and bustle of increased production and revamped initiatives, take this time to review and solidify your company’s cash flow projection.

Managing your cash flow now will help minimize mistakes later – when business and economic trends become more favorable. Still not convinced? Here are five more reasons to consider maintaining your company’s cash flow projection.

5 Reasons Why Managing A Solid Cash Flow Is Just Good Business Sense

  1. A cash flow projection will provide you with the information you need to make better, more lucrative decisions. For example, if you had insight into which of your company’s non-core assets are viable would you make changes to support future growth or would you simply maintain the status quo? With a well-maintained cash flow projection at your fingertips you can make decisions that will help secure a more lucrative future for your company.
  2. If you’re looking for a way to hold you and your team accountable for the company’s success and failures, look no further than your cash flow model. This tool can help you fine-tune your management strategy, which can help you and your team achieve better quality standards, increased production, enhanced efficiency and an improved reaction time.
  3. Your cash flow strategies can empower your team to take further ownership of their work and pride in the company. When they have a chance to see that their actions influence how well the business does as a whole they will be more likely to seek out opportunities for improvement.
  4. When you have a cash flow projection then you have the tool needed to develop timely and attainable goals. When you have a better idea as to how much money is going out and coming in (and why), you and your management team can put plans in place to better manage the company’s cash flow in a more favorable way.
  5. Are you managing cash that you acquired from an external source? Will you manage acquired cash in the future? Stakeholders love cash flow projections because they provide them with the information they need to monitor their investment. Oftentimes banks require you to provide quarterly financial information to prove that you’re complying with the terms of the loan package.

Cash flow is arguably more important to your company’s success than your bottom line because it takes your past, present and future projections into consideration to arrive at a compressive analysis of your financial wellness. Email Rea & Associates to learn more about the importance of cash flow projections and how you can use yours as a valuable management tool.

By Dave Cain, CPA (Dublin office)

 

Related Articles:

How Can My Statement Of Cash Flows Transform My Business?

Cash Flow Is King: Where Do You Need To Focus?

QuickBook Tips For Managing Cash Flow

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How Can My Statement of Cash Flows Transform My Business?

Friday, February 28th, 2014

Do you realize that your business’s financial statements are a valuable management tool for decision making? You may be thinking, “Well, I just get them done because the bank needs them for my loan file,” or, “I think I have a copy in a drawer somewhere.” But if you take the time to understand your financial statements, you’ll be surprised to find that they can give you information on the condition of your company and allow you to make better business decisions.  (more…)

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How Can Contractors Ensure They Have Sufficient Cash Flow?

Monday, October 28th, 2013
As a construction contractor, income taxes are probably the furthest thing from your mind. And you’re probably not too excited about writing big checks to the respective taxing authorities. (more…)
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Cash Flow is King: Where Do You Need to Focus?

Thursday, May 9th, 2013

Do you know the current balance of your business checking account? If you don’t, keep reading. Cash flow is the key to business survival. A healthy business generates money for the operations of the business.  (more…)

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Do You Have Any QuickBooks Tips for Managing Cash Flow?

Wednesday, December 26th, 2012

Cash flow management is a struggle for many small businesses.  Unlike revenue, cash flow isn’t easy to quantify or pin down.  It’s up and down and moves around.  But, most small businesses that fail do so because of a lack of cash flow… not revenue or profits. (more…)

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Where Can You Get Cash for Your Business?

Monday, July 2nd, 2012

All businesses need cash to operate. Without it, you can’t repay expenses let along find new ways to grow your business. But where can you go to find that needed cash? There are only three options: an investor, a bank or within your business. (more…)

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What Does a CFO Do?

Friday, May 25th, 2012

A CFO, or chief financial officer, is the financial head of an organization. Usually reporting directly to the CEO, or chief executive officer, a CFO is responsible for keeping an organization financially healthy.

CFOs work in businesses, not-for-profit organizations and even some government entities. They are responsible for the finances, but what all does that entail? A CFO has four “COAR” areas of responsibility:

Cash Flow
Operations
Accounting
Revenue (more…)

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Have you heard the Good News?

Friday, May 18th, 2012

The Economic Recovery has hit the Construction Industry.

While every industry has suffered during the Great Recession, the construction trade has been particularly hard hit.  As tight government budgets were hampering major infrastructure projects, the foreclosure crisis was impacting new home construction – talk about a double whammy!

But, there’s good news for the construction industry: home prices and construction are beginning to turn around! (more…)

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How do you manage your personal cash flow?

Thursday, April 12th, 2012

There’s no such thing as a free lunch… but a little planning ahead can make it a lot cheaper.

Let’s say you go out for lunch, on average, twice a week. At $8 per meal, you’ll spend more than $800 in one year on those lunches. And if you add in a weekly dinner out ($20), you’ll spend upwards $1,800 per year in restaurants. These little indulgences – fast food here, a sit down dinner there – add up and wreak havoc on your checkbook – and possibly your credit. (more…)

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How do you increase cash flow?

Wednesday, March 21st, 2012

Contrary to popular opinion, profits are not the pulse of business. You can’t spend profits. Most companies go out of business because they lack quality cash flow — not because they lack profits or assets. (more…)

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