Your Bookkeeper – Great or So So?

Let me shed light on an unsung hero whose significance cannot be overstated – your bookkeeper, the keeper of your cash flow and the linchpin of your day-to-day financial operations.

I invite you to watch my video, The Role of Your Bookkeeper, where I delve into the vital importance of a bookkeeper and how they should manage your day-to-day financials.

In a recent encounter with a multi-million-dollar client, we uncovered a series of financial missteps that had led them astray.

Here’s a snapshot of the challenges they faced:

  • Bookkeeping Oversight:
    • The bookkeeper/controller neglected monthly bank reconciliations, resorting instead to monthly journal entries, contrary to our disciplined bookkeeping practices.
  • CPA Oversight:
    • The CPA overlooked fundamental checks and balances, leading to significant tax liabilities. Were they profitable with bad bookkeeping? Shouldn’t the CPA have intervened to create proactive tax strategies?  The CPA did NOT vet the financials; they just took what was provided by the bookkeeper.
  • Lack of Financial Literacy:
    • The business owners lacked the knowledge to interpret financial statements, blindly trusting these financial “experts.”

In the face of perplexity, let your bookkeeper be your guide to clarity and financial empowerment. Together, let’s navigate the intricate landscape of financial management and pave the way for sustainable growth and success.

The SOLUTIONS we will provide:

  • Comprehensive Financial Correction:
    • We will meticulously correct their financials for the last few years by “following the money”, and implementing good bookkeeping processes.
  • Collaborative CPA Review:
    • We will collaborate with a CPA to assess the need for amended tax returns, rectifying errors, and minimizing tax liabilities.
  • Financial Literacy Education:
    • We are committed to educating the owners and their team on financial literacy, empowering them to make informed decisions.
  • Strategic Planning:
    • With a solid foundation in place, we will implement cash flow forecasting and develop proactive strategies to facilitate a turnaround.

To delve deeper into the nuances of good bookkeeping practices, I encourage you to read my blog post on “Keeping Your Bookkeeper Accountable” here.

 

An Extra Set of Eyes for Optimal Peace of Mind

In this month’s newsletter, we’re thrilled to spotlight our clients, who graciously share their journey towards financial empowerment and business success.

By embracing the principals of cash flow, our clients initiated a transformative journey towards profitability and stability.

“Centennial Revenue Management does an amazing job following my money, and their work enables me to make intelligent business decisions based on factual numbers rather than feelings.”
– Dr.Shaun Soucie

“She has made it possible for our company to invest in our people. From the education she offers to developing monthly forecasting. We are in the strongest cash position we have ever been in all thanks to her.”
-Edgar Aguilar, Legacy Construction Cleaning

As extra set of eyes, Centennial Revenue Management can guide you forward by being proactive, not reactive.
Outcomes from Cash Flow Consulting and Advising

  • Finding and diagnosing cash flow issues
  • Implementing solutions
  • Cash flow forecasting and budgeting
  • A/R and A/P process implementation or improvement
  • Performance metrics for maximizing profitability and increasing cash reserves

Centennial Revenue Management is here to help by creating proactive strategies, identify, and transform money habits to ensure you won’t run out of your money.

Holiday Cash Flow Gratitude

Holiday Cash Flow Gratitude

This year may have been filled with a bit of emotional turmoil from all fronts in our daily lives.  The results of inflation for business owners are costing sleepless nights worried about juggling vendor bills and how they will make payroll each month.

Closing the books on 2023; the 3 biggest financial problems I am seeing are:

1. Draining Bank Accounts – Caused by Inflation? Owners are spending more than they are bringing in cash collections.  Everything appears to cost substantially more in 2023 from supplies to paying for employee wages.  On the other side of the equation, sales seem to be flat with not much of an increase over this time last year.  Net effect is more money is going out each month than is coming in, which takes a toll on CASH FLOW!

2. Accounts Receivables are Becoming More Challenging:  
If you as the business owner are struggling with cash flow; consider how your customers are also struggling.  Several of my client’s clients have gone into bankruptcy this year making it harder to collect on A/R. What are your processes to collect more money faster with your customers so you may have a positive impact on accounts receivable? Struggling to collect money from your customers results in reduced monthly revenue.

3. Credit Card Debt and New Loans: Looking at your Balance Sheet, are you seeing credit card debt increasing?  Did you have to draw on a Line of Credit because of monthly shortfalls in cash?  Did you take on a new business loan in 2023 to help pay the bills and make payroll?  The time is now to create a debt servicing strategy to help stop the bleeding of cash!

A HOLIDAY FULL OF FINANCIAL JOY

Going into 2024 with more debt, less cash, and revenues that are not producing a minimum of 10% Net Profit to Revenue Ratio will result in more anxiety and stress.

The #1 action that I want to encourage business owners this holiday season is to think about ONE money habit you are willing to change to make a difference in your financial story.

Give your business the gift of a Cash Flow Optimizer Package (Click to Learn More). Let us bring the discipline of managing cash flow PRO-ACTIVELY monthly. This will result in cultivating good money habits that will lead to PEACE of MIND.

Navigate Q4 within the Labyrinth of Cash Flow

Navigate Q4 within the Labyrinth of Cash Flow

Often compared to the lifeblood of a business, cash flow remains as perplexing as it is crucial. It’s the liquid asset that fuels your operation, yet it’s also a convoluted concept that can lead to the downfall of otherwise promising enterprises.

The 4th quarter of any fiscal year is a labyrinthine maze for business owners — it is complex, but it is not impenetrable.

There is no time to waste if you see your business struggling financially. The easiest approach is to seek out a leader to help.  Investing in professional Cash Flow Services is like having a compass, a map, and a seasoned guide in this complicated journey.

Guide to Cash Flow Management

Through careful planning, real-time tracking, and strategic foresight, business owners can navigate effectively. Keep these tips on hand: 

  1. Keep a Cash Flow Forecast: This is the business equivalent of reading maps. Know what lies ahead.
  2. Monitor Receivables: You can’t solve a puzzle with missing pieces. Ensure that all expected payments are on track.
  3. Streamline Payables: Recognize when to hold back and when to release. Timing is crucial.
  4. Emergency Reserves: Store the acorns for winter; an emergency fund is vital.
  5. Regular Review: Constantly scrutinize your financial records as if they are riddles waiting to be solved.
  6. Consult the Experts: Seek professional cash flow services to show you the path to a profitable future months.

A cash flow expert is a game changer in making owners masters of their financial maze. As a partner, I offer my knowledge and can change owners financial attitudes, habits, and management to lead them to their finanical goals.

See how far an expert can take you!

Back to School Refresher Course on Cash Flow

Are You Ready For Another Year?  

Start the road to financial freedom and cash flow confidence using Debra’s methodology to forecast 8 months into the future. Here is a quick video to learn more about cash flow forecasting: CRM Cash Flow Forecasting – YouTube. 

Gain confidence with a 5-Minute Read. Update your cash flow knowledge in a library full of monthly blogs from Debra’s resourceful Knowledge Bank. Such blogs discuss:

  • How Much Cash on Hand is Enough? Cash reserves/cash on hand are the amounts of cash accessible to a business once outstanding balances have been paid. It’s an important metric to measure and determine what amount is enough for emergencies or dips in business. How much do you need on hand? Read More...
  • The Bad Money Habits You Need to Break – I’ve seen those bad habits broken with big payoffs. What follows is a selection of some of the most common bad habits I’ve encountered during my time as a cash flow specialist, as well as how to address them. Read More…
  • The Role of your Bookkeeper – Most business owners think of their CPA as a go to expert for financial reporting, when in fact they should be going to their bookkeeper – The keeper of the cash flow. Read More…
  • Where is your Company positioned in the Cash Flow Arena? It is not uncommon for a company to show a net profit on their income statement and still find that they are having shortfalls of cash each month. Why is that? The art of managing cash flow is to look 90 to 120 days into the future. My cash flow optimizing package forecasts 8 months into the future to predict a likely outcome. Full Article…

Centennial Revenue Management works with small business owners across industries whose needs extend beyond the basics of revenue management into total control and fiscal health. 

Five Top Strategies to Optimize Cash Flow

Five Top Strategies to Optimize Cash Flow

What is your definition of cash flow? Simply put, it’s money in and money out of your business = CASH FLOW.   Would you say your company is having good cash flow?  Are you profitable, and you think that means you must have good cash flow?  Are you accruing credit card debt and that means you are experiencing poor cash flow?  From my seat at “your table” I would tell you as a CFO/Cash Flow Strategist, that to have good cash flow means:

 

  • Your Net Profit is a minimum of 10% of your Gross Revenues. If your sales are $100k/month, your Net Profit should be a minimum of $10k/month. 

 

  • Your Net Profit % needs to be higher if you are servicing debt and/or taking owner distributions. These items are posted on your Balance Sheet and do NOT affect Net Profits!  

 

  • You are adding more money each month to your bank accounts that helps you achieve 3 times your monthly payroll expense. If your payroll is $50k/month, your total cash available to you should = $150K at the start of each month. 

 


Person flipping through money

Key Strategies for Optimizing Cash Flow in Today’s Business Environment

From my experience in today’s environment, most business owners are spending money as fast as it is coming in and then some. Being accountable and aware of the movement of money in and out of your business is the most important step toward optimizing cash flow. 

Top 5 Strategies that I highly recommend paying attention to optimizing cash flow are: 

  1. Bring outside eyes to your financial arena: Take the time and consider investing your money into a Fractional CFO / Cash Flow Strategist. I help my clients understand how to read their Profit and Loss and Balance Sheet from a CEO’s perspective rather than from your CPA’s perspective. 
  2. Learn to “follow the money” from a Profit and Loss to the Balance Sheet: I defer to #1 above. Do you know how to read your P&L and Balance Sheet on a monthly basis?
  3. Implement an Accounts Receivable Process (Money In): This is the money that you have earned and want to come in as fast as possible. How do you ask for money owed?
  4. Implement an Accounts Payable Process (Money Out): This is money going out that you want to slow down and control how you pay your vendors.
  5. Work from a Budget that is created from proactive strategies: I say it often; cash flow is not about the next 30 days as that money is already in play. You need to plan for the next 90 to 120 days from now.

Optimizing cash flow will take creating some proactive strategies! Partnering with an Outsourced CFO / Cash Flow Expert can help to empower you to increase your cash reserves and profitability. What if you could learn to manage the outflow of money against your revenue trends and make a profit and optimize cash flow?

Take back financial control and learn how to be proactive by scheduling a complimentary consultation with me by clicking the button below.

Want to understand how to read your financials from a CEO’s perspective and not rely on your CPA and/or Bookkeeper to interpret your financial story? Connect with me for an hour and I will tell you what your financial story is from a CEO’s perspective. 

Click here to book your complimentary consultation

 

We’re thrilled to announce the exciting rebranding of our SWOT package as the Cash Flow Optimizer Package! This offering still provides all the incredible benefits you know and love, including the delivery of an eight-month cash flow forecast directly tied to your current financial story, guidance on maintaining minimum cash balances, a comprehensive analysis of your current situation, and a personalized one-on-one consultation to understand your cash flow forecast.

Experience the power of optimizing your cash flow with our newly renamed package, designed to help you make smart short-term decisions and secure a prosperous future for your business.

 

Click here to check out our Cash Flow Optimizer Package

 

The Bad Money Habits to Break 

The Bad Money Habits to Break 

 

“It takes 21 days to break a habit.” That’s how the old adage goes. Unfortunately, experts have agreed that this simply isn’t true – but don’t be discouraged. In my two-plus decades of working with business owners from various industries, I’ve encountered quite a few bad money habits. And fortunately, with some diligence from the business owner alongside education and support from myself and the rest of their team of financial experts, I’ve seen those bad habits broken with big payoffs. What follows is a selection of some of the most common bad habits I’ve encountered during my tie as a cash flow specialist, as well as how to address them. 

1.Being complacent with the financials. I strongly encourage you to take “ownership” of your financials by educating yourself on how to read your Profit and Loss, Balance Sheet, Accounts Receivable Report and Accounts Payable Report.

2. Commingling money between business and personal finances.  It’s important for business owners to remember that the company is not their personal cash bank account. Keep business and home separate! One of the easiest ways to break this habit is by opening a business credit card account that you use exclusively for business needs and expenses. This will help you avoid intermingling expenditures and simplify matters related to budgeting.

3. Racking up loans or credit card debt to buy what you “want”. While it can be tempting to use your line of credit to invest in things like new software or technology, this kind of spending can quickly get out of hand and leave your business in a cash flow crunch. If you cannot pay off your credit card each month, it is a red flag that you are spending more than your monthly budget can support. Create a proactive debt servicing strategy to eliminate credit card debt before buying things when you want them, at least until you can afford them.

4. Trying to do it yourself.  Many business owners try and tackle their financial situation alone with the notion that they’re saving money. The truth is, hiring a team of financial experts (bookkeeper, CFO, CPA), can save you more money than the fees of its respective members. Doing your own bookkeeping is not the highest and best use of your time.

5. Relying only on your CPA. A CPA is focused on taxes, therefore relying solely on one will not help you with understanding your financial story.  A CFO should be focused on increasing your bottom line to optimize your cash flow.  This takes proactive thinking (CFO); not reactive thinking (CPA).

 

Don’t let these bad money habits stifle the success of your business. Take back financial control and learn how to be proactive by scheduling a complimentary consultation by clicking the button below.

Click here to book your complimentary consultation

 

Who’s Managing the Life Blood of Your Business?

Who’s Managing the Life Blood of Your Business?

Get back to business with a Cash Flow Consultant / CFO at your side.

 

Are you a business owner that surrounds yourself with subject matter experts? Or are you wearing many hats to take your business to the next level? As a small business owner, you are most likely filling the role of a CEO and CFO and maybe even doing your own bookkeeping.

 

Outsourcing your CFO can help alleviate the burden of financial management and enable you to concentrate on the revenue-generating activities that are crucial to your business’s growth.

 

Did you know the #1 Dirty Little Secret About Cash Flow is: “It’s not about the next 30 days, that money is already in play. You need to look 90 to 120 days from now to know if you are going to have good cash flow!”

Maximizing Cash Flow: The Benefits of Hiring a CFO/Cash Flow Consultant

 

  • When Should You Hire a CFO / Cash Flow Consultant: In today’s business landscape, outsourcing is a less expensive way to go when wanting to “hire” your subject matter experts!

 

  • Benefits that a CFO Cash Flow Consultant Can Provide: We cannot be “experts” in all aspects of our business. The goal is to look at the good, the bad, and identify what is not working.

 

  • Who is Watching Your Cash Flow? Take Advantage of the SWOT Analysis Package before Investing in a CFO. If you want to know where you stand, take advantage of the SWOT Analysis Package – strengths, weaknesses, opportunities and threats. Click here to learn more about this offering.

 

  • Be PROACTIVE, not reactive with your financial strategies. Now is the time to collaborate with a CFO/Cash Flow Consultant to help you take charge of your cash flow!

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Discover the Benefits of Outsourcing a CFO in this Video

Meet Debra and learn about Centennial Revenue Management and outsourced CFO

Centennial Revenue Management is here to help by creating proactive strategies, identify, and transform money habits to ensure you won’t run out of your money.

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Take a big step and invest in your financial health and contact Debra today for a 6 month CFO / Cash Flow Package.

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As a business owner, it’s essential to have a deep understanding of your finances to make informed decisions and drive growth. An outsourced CFO can provide you with the education and insights you need to succeed. Click below to learn more about Debra’s 6 month CFO/Cash Flow Package and take a big step towards a brighter financial future.

Click Here To Request a Complimentary Consultation

Do You Have More Month at the End of Your Money?

With increased supply costs, employee wages, and interest rates continuing to climb, the economic environment can be stressful. Many business owners try and tackle their financial situation alone with the notion that they can save money.The truth is, employing a team of financial experts can result in net savings, as the investment can improve your cash flow and net profits. Additionally, the investment can offer peace of mind.A cashflow specialist is an expert in designing the road map to build valuable cash flow forecasts which can empower you to project how much cash reserves are necessary monthly.

 

The Simple Formula for Avoiding a Cash Crunch

Determining the right amount of cash to have on hand each month should not be rocket science. I educate my clients to use one of two goals to help them not run out of money. The cash balance at the beginning of each month should be equal to:– 3 Months of the total Payroll Cost or– 1 Month Total Outlay of Cash (includes what is posting on your Balance Sheet!)This important figure varies from business to business. The sweet spot for a particular business can be determined through cash flow forecasting. I educate my clients on the importance of understanding cash flow beyond just the immediate future. Rather than focusing solely on the next 30 or 60 days, I encourage them to look ahead at least three months to predict whether they might face a cash shortage.

 

Schedule a Complimentary Consultation With Me

Don’t let money slip away so easily. The success of your business relies on financial controlLearn how to be proactive by scheduling a complimentary consultation with me at the number below.

303.901.4823

 

Curious to Know the Health of Your Business?

The SWOT Cash Flow Forecasting Package offers a unique opportunity for business owners to gain valuable insight into their financial future with a one-time analysis and personal consultation. With my expertise, you will receive an 8-month forecast of your cash on hand balances based on your current financial story, making this package a smart investment in your financial future.

 

Click Here to Learn More About Investing in Your Financial Success

 

Boost Your Business Cash Flow

Are you struggling to keep up with increased supply costs, employee wages, and interest rates? Don’t let financial challenges hold your business back.In this blog post, I share valuable insights on how to effectively manage your cash flow and position your business for success in the cash flow arena. By implementing proven strategies and tools for forecasting and managing cash flow, you can gain greater financial control and stability, helping your business thrive in today’s competitive environment. Don’t miss this essential information – head over to my blog now to learn more!

Read More

The 1, 2, 3 of Cash Flow Basics

Let’s go back to the early years of your business. How in control were you?I have learned that all my clients began their businesses with very simple practices. As their business grew, the focus strayed away from those fundamentals. Pivoting them back to these basics, I am reintroducing the 1, 2, 3’s of cash flow to ensure business thrives.

Basics of Cash Flow It’s not about the next 30 or even 60 days that affects cash flow.  That money is already in play.  If you want to make a difference in your cash flow arena, you need to look 90 days into the futureCreate a strategy today to get a different outcome in increasing your cash in the bank.  Quickly Identify, Yes or No?  

  1. Is your bookkeeper keeping your financials current? (If no – how do you make good PROACTIVE financial decisions?)
  2. Do you have an accounts receivable process? (If not, how do you ask for money that is owed to you?)
  3. Do you have an accounts payable process?  (If not, how do you control the outflow of money against what you are collecting each month?)
  4. Do you have a debt servicing strategy? (If not, paying when you think you can let go of money is like throwing noodles against the wall.)

Tips:

  1. Get involved and don’t handle business financials alone.
  2. Gather a team of financial experts – Save money and be rest assured that you have guidance to make the right decisions with money.
  3. Money going out of your business should be slow and controlled.  If you can control your outgoing cash, you can control your cash flow.

Financial Habits –Now more than ever, it is important to keep yourself financially educated to be empowered and to have peace of mind. Consider these valuable insights for building a strong financial arena:

  1. Follow the Money
  2. Break Bad Money Habits You Need to Break 
  3. Understand How Corporate Taxes Affect Your Personal Return

Get back to basics, to maximize net profits, optimize cash flow AND get more money in your pocket!

 

EASY AS PARENTING, HA! 

Alike raising a child, a business takes a village. It is a full time role to ensure the fundamentals stay in play through the growth of the business.  Creating routine check ups will help a business mature to run successfully on its own.Schedule a Financial Check Up –Too often, financials are only looked at in the rear-view mirror, yet business success depends on managing to the future. Start with answering these questions:

  1. What is your cash on hand balance from last month?
  2. What are your average cash revenues (not accrual revenues), monthly?
  3. What is your average outlay of cash, not total expenses each month?

A lot may have happened over the years, but never loose discipline of having good cash flow. Pivoting back to the basics can lead to big payoffs.