Good cash management can improve your company’s liquidity, reduce costs, and increase profitability. We can help you maintain optimal cash flow levels by tracking sources and uses, forecasting, and budgeting accordingly.
Think of cash as the ingredient that makes the business operate smoothly just as grease is the ingredient that makes a machine function smoothly. Without adequate cash a business cannot function because many of the transactions require cash to complete them.
By creating a cash flow budget you can project your sources and applications of funds for the upcoming time periods. You will identify any cash deficit periods in advance so you can take corrective actions now to alleviate the deficit. This may involve shifting the timing of certain transactions. It may also determine when money will be borrowed. If borrowing is involved, it will also determine the amount of cash that needs to be borrowed.
Periods of excess cash can also be identified. This information can be used to direct excess cash into interest bearing assets where additional revenue can be generated or to scheduled loan payments.
Cash flow also includes the purchase and tracking of fixed assets, such as vehicles, equipment and property. When any such item is added to your business, we automatically track the depreciation associated with it, making sure your audit, bookkeeping, and tax preparation isn't missing these essential ingrediants.