Call Today: (202) 789 - 8898
cash-flow-small-business
Posted by: Charles P Myrick CPA Posted on: May 29 2020 Posted in: small business, cash flow management

Is Cash Flow a Challenge for Your Small Business?

In my work with small businesses I am familiar with how cash flow management can make-or-break a company. Simply stated, if you aren't properly managing the flow of your money, then you are setting your business up for failure. In this time of COVID-19, managing cash flow is more critical than ever. A new commitment to cash flow planning and management is needed.

Why is Cash Flow Management so Hard?

Even in normal times many business owners run into problems with cash flow. They have a hard time finding their way out without leveraging a lot of credit. A typical scenario is that bills and invoices need to be paid right away, but the incoming money is delayed because of production costs and other factors. Even if you know that you will be able to sell the product in the future, it might be hard to keep the business afloat until that happens. During a shutdown reduced income is a reality.

Accountability, transparency, and planning of business and personal financial activity will be critical to protect your small business investments. Projecting the results of reduced income, even if temporary, will guide changes in spending priorities, billing, and business model. Up-to-date cash flow projections are necessary to quantify those changes.

An Accounting Firm Can Help Manage Cash Flow

One of the best things that you can do is contract your accounting services. A small business accounting firm that offers CFO services will conduct a cash flow analysis of your funds so that you take a proactive approach to controlling your cash flow. A CPA will be able to help you look at monthly, quarterly, and annual reports so that you can actually see how much money you have brought in and the anticipated profits in any given period. This information will help you manage cash flow by using better financial decisions so that you aren't spending more money than you have available.

Let me know when you would like to talk. As planners, we are here to assist you in navigating simple solutions.

Stay safe, stay well, and stay tuned,

Charles and the Myrick CPA Team

Download Your Copy of CFO Services for Small Businesses

 

If you want to achieve long-term financial success with your small business, contact us to learn more about the small business accounting services that are available. We work with clients located in the Washington DC area, and we also offer virtual business services for clients located anywhere. Contact us today to learn more: (202) 789-8898

 

Secure Client Portal

CLIENT LOGIN

Second year in a row: Myrick CPA voted Best Accounting Firm in DC 2017

Myrick CPA is Best Accounting Firm in DC in 2016



Free Business Process Improvement Tools: Download Our Checklist for Business Record Keeping Now





Follow Me

Subscribe to Email Updates