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.
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:
- Keep a Cash Flow Forecast: This is the business equivalent of reading maps. Know what lies ahead.
- Monitor Receivables: You can’t solve a puzzle with missing pieces. Ensure that all expected payments are on track.
- Streamline Payables: Recognize when to hold back and when to release. Timing is crucial.
- Emergency Reserves: Store the acorns for winter; an emergency fund is vital.
- Regular Review: Constantly scrutinize your financial records as if they are riddles waiting to be solved.
- 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!
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 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?
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!
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
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).
Trick or SWOT? Treating your Finances…. To Outside Eyes!
Don’t be tricked by your numbers. Understanding cash flow in your business should not be frightful! Don’t play it safe going into the end of the year and not know what ghosts and goblins are interfering in maximizing your net profits and optimizing your cash flow.
Do you know the answers to these scary questions?
- Have you figured out if you are spending more money each month than you are bringing in on a cash collection basis?
- Do you know how to read your Balance Sheet that has lots of dirty little secrets?
- Do you know what your monthly breakeven revenue amount needs to be so you don’t run out of money?
- Do you know what your monthly cash reserves amount needs to be so you don’t have to juggle payroll and vendor bills?
Now more than ever, it is important to keep yourself financially educated to have a healthy business in 2021. Achieving cash flow wellbeing takes a team of trusted advisors. If you’re wrapped in wonder of it what would be like to step into November with a full awareness and presence in your financial arena, it is time to treat your business to a cash flow analysis.
SWOT Package Special 25% OFF through November. Become empowered by knowing what your cash on hand will look like for the next 8 months and schedule TODAY! Click to find more information on a SWOT analysis (strengths, weaknesses, opportunities and threats). As an expert of cash, I bring outside eyes to your financial arena. I will do a deep dive into your financials, create a working forecast model, and will deliver it to you in a 2 hour consultation. If you need support with collaborating with your CPA, I welcome the opportunity to help.
Find confidence and comfort in the financial health of your business. For the month of November, we are offering a cash flow package to help educate you on the movement of money in your business. Schedule your complimentary consultation today by calling (303) 835-7992.