Are You Having Cash Flow Problems?
What Every Business Owner Ought To Know About Cash Flow From Operations
Behind on your books or taxes?
Are you struggling to create accurate cash-flow statements?
Do you know your core business financials down to the penny?
Businesses track cash flow from operations to achieve consistent growth and long term success.
Cash flow from operating activities is the backbone to core business success.
It’s not enough to hope that your cash flow is positive, margins are fat, or business is protected.
And if you’re not reviewing cash flow statements on a weekly or monthly basis, you’re probably losing a ton of revenue.
This is why an Expert bookkeeper is vital to the success of your business.
As your Top Rated Local® Master Bookkeeper, I deliver reports on time, weekly, monthly, quarterly, or annually.
Know where your business financials stand, right now. Let me save you a ton.
What Your Cash Flow From Operations Says About Your Business
How you manage cash flow tells a lot about your current and potential business success.
The backbone of core business is cash flow. Total money transferring in and out of your business affects operations and growth.
Cash flow also affects the liquidity of your business, which is imperative to your overall business survival during downturns in the market — and downturns will occur.
Spot-on cash flow statements allow you to:
- Identify and review where money is coming and going.
- Take steps to check and maintain adequate amounts of cash.
- Know where your financials stand to make informed business decisions.
If you or your hired bookkeeper are not delivering cash flow statements weekly, monthly, quarterly, or annually, you’re leaving tons of revenue on the table.
Not knowing your cash availability directly affects your core business operations and financial opportunities.
And when the market takes a turn for the worst (and it will), positive cash flow margins keep your business afloat while everything else sinks.
Want to MAXIMIZE cash flow?
Ready to shore up your business financials?
Behind on your books?
Three major statements make up your financial reporting:
- Balance sheet
- Income statement (P&Ls)
- Cash flow statement
You or your bookkeeper ought to compile and deliver these reports on a consistent basis.
As your Top Rated Local® Expert Bookkeeper, I deliver all financial statements when you want them, weekly, monthly, quarterly, or annually.
Spot-on, accurate reporting saves you a ton in time and cash flow.
Your balance sheet should report on your business assets and liabilities. It ultimately reflects your financial position as a business.
Here are some of the items that you ought to see on your balance sheet:
- Current assets
- Property, plan, and equipment
- Intangible assets
- Other assets
- Current liabilities
- Non-current liabilities
Understanding how your cash flow interacts with all of these financial factors helps your business sustain, grow, and thrive in any market.
Your income statement shows the actual profitability of your business. It can also be called a Profit & Loss statement (P&L). Accuracy is critical.
Your profitability affects a number of business moves like loans, credit, selling, and more.
Accurate current and historical income statements support business and revenue growth.
If your books are not current or accurate, you limit your ability to leverage loans, credit, and more.
Ergo, you limit your business growth, which stifles your ability to create more cash flow.
Get rejected for a business loan or line of credit recently?
Your inaccurate income statements are a probable cause.
Cash Flow Statement
Your cash flow statement divides into three sections:
If you’re not seeing cash flow statements for your core business, you’re leaving tons of revenue on the table.
These three sections provide a picture of where your business stands financially, where money comes from, goes to, and net change.
It’s important you know how your cash flow works for you so that you can make informed business decisions.
Business growth doesn’t happen on its own. It takes deliberate decision making to grow and expand your business.
How do you know what to leverage financially if you don’t know your cash flow?
Answer: It’s impossible.
Any financial leverage ought to be based on your current run rate, available cash flow, and potential for growth. Not having all three of these in front of you while making decisions dramatically increases your probability of business failure.
Do you want spot-on reports delivered weekly, monthly, quarterly?
Are your books a mess?
Don’t wait for business failure before making a change.
2 Types Of Cash Flow Reporting From Operations Activities
Operating activities can be reported in one of these two ways on your cash flow statement:
How you want your cash flow reported is up to you.
As your Top Rated Local® Master Bookkeeper, I prepare your cash flow statements how you want them, on-time and accurately.
Inaccurate cash flow statements will sink your business.
Let me rescue your financials from impending failure.
Indirect Cash Flow Reporting Method
Indirect cash flow reporting shows revenue recognized, not necessarily when cash is received.
For example, if a customer buys a product on credit for $1,000, the sale has been made, but the cash will not be recognized, yet.
The revenue is recognized, but the “cash in hand” is not.
This means that in your balance sheet on the accounts receivable line, you would need an offset of $1,000. This offset line item would look something like this:
“Increase in accounts receivable -$1,000.”
Inaccuracies in indirect cash flow reporting will sink your business because you won’t know actual cash in hand versus recognized revenue.
This is what makes accurate bookkeeping and on-time reporting vital to your business success.
Direct Cash Flow Reporting Method
Direct cash flow reporting shows transactions once cash is received. This displays actual cash in hand instead of potential cash flow like indirect reporting.
Direct cash flow reporting examples:
- Paid employee salaries
- Paid vendors and suppliers
- Paid income tax and interest (my In-House CPA can also help if you are behind on your taxes)
- Collected customer invoices
- Collected income and dividends
When you know cash in hand, you make better business financial decisions, but the only way to get accurate, spot-on reporting is through your Top Rated Local® Expert Bookkeeper.
Indirect vs. Direct Reporting Methods
Which cash flow reporting method should you use in your business?
if you’re not sure which one you use now, you’re probably losing tons in revenue.
As your Local Master Bookkeeper, I help you maximize cash flow and deliver on-time, accurate financial reports so you know where your business stands, right now.
I will save your books and your business.
How Master Bookkeeper Maximizes Cash Flow
Cash flow is one of the major causes for business failure. Your business success relies heavily on your ability to properly maintain your books. But, if your books are a mess and your cash flow negative, you multiply business failure a ton.
Here are the major cash flow factors:
- Net income & adjustments
- Depreciation, depletion, & amortization
- Accounts receivable changes
- Liability changes
- Inventory changes
- Operating activity changes
Do you know how these factors affect your business and its success?
Do you keep your own financial books for your business?
Behind on your books right now?
I’m your Top Rated Local® Master bookkeeper, and I help bring months’ and years’ back financials current, the first time. Your business is safe in my forensic-bookkeeping hands.
Core Local Master Bookkeeping Capabilities
- 15+ years of Master Bookkeeping experience
- Using a Forensic Approach and your in-place Accounting Software, I bring months and several years of Unreconciled Accounts current-delivering Laser Focused Cash Flow, Balance Sheets, and P&L’s
- Job Costing
- Payroll-plugging in the right add-on to your current accounting system. Think, ADP, Gusto-all of the latest technology available
- Accounts Payable/Accounts Receivable
- Full time or part time, in-house or remote
- Budgeting/Forecasting-showing you where you should go in the future
- The latest AI plug-ins right into your accounting software