How Can I Manage My Company’s Cash Flow?

Cash Flow Forecasting Taught to Gwinnett Business Owners by Atlanta CPA

Located conveniently in Duluth, Georgia is award winning CPA, John Dillard CPA who assists Gwinnett to Metro Atlanta business owners before they make a larger financial cash outlay. Though many business owners will spend substantive time evaluating their cash balance, this alone fails to contemplate other information available that might dramatically impact important operational and strategic issues. Consideration to long-term issues would include evaluation of the business’s current results versus its annual forecast, and a careful review of future sales and profit forecasts. It is also important to evaluate cash balances considering anticipated dates of collection of receivables, payment of ordinary debt, accounts payable, fixed asset purchases, and leases as all of these issues have substantive impact on what your future cash balances will be.

In light of this information, you are better able to make wise decisions that take into consideration future issues and your ability to satisfactorily balance the varying ebbs and flows that affect not only your present but future ongoing operations and the very viability of your business. Failure to consider each and all of these issues will result in a perpetual array of poor cash decisions, as they are not grounded in fact. Though running a business is indeed an art, it is based upon one’s ability to perceive and properly process and evaluate the facts available that are tantamount to one’s success. I recommend that all business owners prepare a formal written cash forecast at least monthly which allows them to gain insight into the future and will prove invaluable when making monetary decisions.

Also, care and consideration should be given as new items appear on a business owner’s viewfinder, as it is at these times of reviewing decisions out of the ordinary when it is even more critical to consider other variables as well. When evaluating a new issue of any size and consequence it is wise to seek the advice and counsel of a trusted and seasoned CPA who can act as a sounding board to both bounce ideas off of and to seek their input. Often such an adviser will be able to guide you to make a one hundred and eighty degree turn saving you from a poor financial/operational decision.

Often a CPA might be able to provide needed insight by offering tweaks to your plan which ultimately bring needed strength, wisdom, documentation, and clarity to your plan, making your initial good idea even more potent and powerful than before. In business often it is the difference in the little things that makes a business successful and allows it to avoid major pitfalls.

Though there might be times when we will look back and say we wish we had known other variables which impacted the results of the decisions that we reach, our goal should be that we always make decisions using the very best information we might obtain while carefully contemplating the business environment, our own experiences, and a trusted adviser. In this way we are most apt to have no true regrets over our decisions reached, as we cannot fairly punish ourselves for information that could not have been known.

One of the best insurance policies in the cash management game are lines of credit and providing an ample margin of error by leaving extra monies available for a rainy day. Also of primary importance is to have available open lines of credit which can meet the cash needs of a business as its needs dramatically change. Banks are generally eager to open and maintain a line of a credit for a business that has peak cash needs while continuing to operate at a profitable level.

Though many business owners know their cash balance to the penny, few fail to take the time and effort to truly understand the short and long term ebbs and flows of their cash balances and their impending and certain impact on their financial operations. By working with us you will learn how to better plan when making decisions affecting your company’s cash balances.

HisCPA PC (A Christian CPA Firm) Offers Free Initial Consultations/Interviews offering:

  • Atlanta Bookkeeping Services
  • Atlanta Financial Statements
  • Atlanta Tax Problems
  • Atlanta Tax Preparation for Business Owners & Personal Income Tax Returns

Contact HIS CPA PC (A Christian CPA Firm) today.