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.

New Year with New Cash Flow Solutions

New Year with New Cash Flow Solutions

Happy New Year!

In 2023, it is time to discover the pattern of cash flow that works for your business. A little change could make a big difference for financial success.

Moving money through the wrong channels at the wrong times can drastically bottleneck cash reserves. Partnering with a cash flow expert is the quickest step to excel your financial knowledge within your business.

The #1 action that cash flow experts suggest is to generate a financial forecast to create the road map of spending.

The immediate ROI is knowledge of the dollar amount needed for cash reserves.

Having looked at many business financials in the last year, I have observed business owners tensions grow as inflation rises costs. However, with the ability to be disciplined to a cash flow plan, owners can pivot away from cutting their biggest expense; salaries and benefits, .

Closing the books on 2022; the 3 biggest financial problems I am seeing are:

1. Draining Bank Accounts: Owners are spending more than they are bringing in cash collections.

2. Accounts Receivables are becoming more challenging:  Struggles with cash flow results in reduced monthly revenue.

3. Rising costs and less revenue: Inflation has tightened bank accounts leaving less extra money for reserves.

I welcome the opportunity to help dental practices and small business owners to discover their pattern of cash flow to eliminate money struggles for 2023.

Not sure where to start? Sign up for a SWOT package that will deliver: the good, the bad, and proactive strategies you can implement right away to become more empowered in managing your financial arena in 2023.

EASY AS SWOT 

Which way is your money flowing? Gain the level of empowerment that only comes from a SWOT analysis.

SWOT Cash Flow Forecasting Package: One Time analysis of owners current financials. Debra will create a cash flow forecast giving owners an 8 month view into the future of what their cash on hand balances are likely to be based on their current financial story.

  • Delivery of an eight-month cash flow forecast that is directly tied to your current financial story.
  • Guidance on what your minimum cash on hand balances need to be to sustain your business in the months ahead.
  • A one-time analysis to help you understand where you are today and identify proactive strategies that can help you make smart short term decisions.
  • One-on-one consultation to understand your cash flow forecast, which will model a likely outcome for 8 months into the future

 

EIDL Loans – Accrued Interest; Are you Aware?

EIDL Loans – Accrued Interest; Are you Aware?

Did you take on more debt by signing up for an EIDL loan?  Have you been funded with 1, 2 or even 3 loans in the last 2 years?  If so, please continue to read this very important message that I want to convey that you might not realize what you signed up for when you took on more debt from the SBA.I worked with one of my clients last week to learn about how the payback schedules are going to be kicking in. Most of my clients started receiving EIDL funds in 2020 and then some have taken 1 or 2 more loans. Each time, the government is deferring when your FIRST payment will be due.

SBA Loan – Gift or Burden?

How nice of the SBA to let you know that your loan(s) payments are being deferred for 12 or 24 months from your initial funding.  Here’s the kicker…… your loans have been accruing interest from day 1 of receiving those funds. I learned that my client has accrued $14,500+ of interest on approximately $650K loan payoff.  I also learned that until the accrued interest is paid off, we won’t touch the principal balance of the loan. Client’s interest is charged at $65.47/day until she is current. Oh, by the way, her first payment is not due until May of 2023 because the govt will defer another 12 months from her last funding. How nice of the SBA, or not???? Who is making money off your debt?  Is it a gift or is it a burden?Steps to Find Your Accrued Interest  

Think about that for a minute……If you have not looked into your EIDL loan and are just sitting back waiting for that deferred payment schedule to kick in; I would like to strongly encourage you to find out what the accrued interest amount is sitting on your account.  Here are a few steps you can follow:

  • Find the last email/letter from the SBA that is for the loan.  This will be your original loan document or the last AMENDED notice for the loan.  
  • You can call the 800 number on that letter for help.  What I learned walking through this process with my client is we went to this website:  Capital Access Financial System (sba.gov).  
  • You will need to ENROLL by clicking the NOT ENROLLED link.  
  • You can create your login information.  (This is a different site than where you originally signed up for the loan.)
  • It’s very easy.  But, again, if you need help, call the 800 number on the loan document that you have received.
  • Once you get logged in, it will tell you what the total balance is including the accrued interest amount.  This is what needs to be paid before you will start hitting the principal amount. 
  • You will also see when your first payment will be due.  

Dirty Little SecretFrom my seat in the sandbox as a CASH FLOW expert, it’s important to create debt servicing strategies in line with how your cash flow can support them.  Understanding how to manage cash flow takes more than just reading your Profit and Loss.  You MUST understand the Balance Sheet that is tracking all your debt.  How much you are posting to the principal portion of the loans are posting here.  This money going out has NOTHING to do with your Net Profit/Loss.Proposed Solution

I would welcome the opportunity to help you create those debt servicing strategies from a proactive perspective; not reactive.  We are continuing to offer our SWOT Package to help you know where you are currently with your cash flow.  The good, the bad and the ugly.  Here is a snapshot of what this package can offer:  SWOT Packages | Get Total Cash Clarity | Centennial Revenue Mgmt (centennialrevenuemanagement.com).

Make Money Last

Make Money Last

 

Beginning the month with promising figures can turn discouraging within thirty days, if funds are back to zero. Dirty Little Secrets of cash flow confidence are ways to control payables to ensure money lasts and even grows through each month rather than disappears. Penny pinching is a thing of the past, there are ways to succeed in every financial situation.

Business owners truly have the opportunity to decide how to spend. Conditioning accounts payable to act more like a bottle neck than a fire hose is the first step to nurturing a business bank account.

With increased production costs, employee wages, and interest rates about to climb; the economic environment is shouldering business owners decision making. Being conscience to fend off emotional spends or splurges to save a dollar is another trade secret in healthy cash flow. Click to read more on Money Habits.

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 can actually save you more money than the fees of its respective members. A cashflow specialist is a key guide to designing the road map to build valuable cash flow forecasts which eliminate the stress of uncertainty.

 

Savings Lift Off!

 

Unfortunately, there is no magic number that determines the right amount of cash on hand. This important figure varies from business to business. Essentially, the sweet spot for a particular business can be determined through cash flow forecasting.

From my seat at the table, the correct amount of beginning/ending cash balances will be defined by how easily a business owner can find peace of mind at the end of the day and go to sleep without worrying about cash flow each month.

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

Curious to Know the Health of Your Business? 

SWOT Cash Flow Forecasting Package: One Time analysis of owners current financials. Debra will create a cash flow forecast giving owners an 8 month view into the future of what their cash on hand balances are likely to be based on their current financial story.