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

 

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

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).