Cash flow forecasting
An important element in running a business is cash flow: actual, forecasting, and budgeting. Everyone should have an idea as to where and when their cash is coming in and going out in order to make sound financial decisions. Have you ever created a worksheet to try to understand your cash flow? Do you know how long your receivables age before receiving cash, on average? Do you know when you will need to infuse more cash into your operating cash account? Do you know when payments are coming due in relation to cash coming in? I want to help you.
Do you have a budget for your business? Have you thought about creating one, but are unsure how, or where, to begin? Budgeting is not a waste of time, but rather an opportunity to take a serious look at your business and its future. In creating a budget, you need to review the past and then think about the future and where you want to take your business. It gives you an opportunity to reflect on what worked and what has not worked. Do you want to continue down the same path, or do you see an opportunity that may be a better fit for your company? Without creating a budget, how do you know how well you are doing regarding your plans for your business?
Did you know that you should begin your budget with a projection for revenue/sales and then work on expenses from there? While the task of creating a budget can be daunting, it does not have to be complicated. I can help you create your annual budgets and teach you how to use your budget in your financial analysis of your company. Give me a call and lets talk about your budget.
Reviewing Financial Statements
You get financial reports on a timely basis, that is fantastic! But now what? Do you truly know what they are telling you? Do you know how to analyze them to understand what happened during the period you are reviewing? Does your income statement say one thing while your cash account is saying another? Have you ever really looked at the Statement of Cash Flows? Did you know that the Statement of Cash Flows is just as important as your Income Statement (P&L) and Balance Sheet?
Would you like someone to analyze those statements for you each month and give you a summary of what they are saying? Or, maybe you are a hands on type and would like to learn how to analyze them yourself. I can help you. I can guide you and your team through the financial statements so that you can learn to understand what they are saying and how to use them to make more informed business decisions. A better understanding of these statements leads to a better understanding of your business.
Call or e-mail me to schedule an appointment to see how I can help you.