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.

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