Friday, June 09, 2017

Cash Flow

There are warning signs of inadequate cash flow. Here are a few.

  • Your debt service is uncomfortable (higher than what allows easy payment of your bills).
  • When you pay your bills you are unable to take advantage of early payment discounts or in the case of credit cards, entire balances are not paid in full.
  • Your average collection of your receivables are slower than anticipated, causing a problem.
  • You have too little in cash reserves and you need to borrow to keep your bills current.

Ask your CPA to help you balance your cash flow to be compatible with your amount of business.

A regular part of your financial statement from your CPA should track your cash flow and give you monthly or quarterly reports of its positive or negative aspect.

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The Bane-Clene® Team.