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.
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 hereto 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.
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.
The SWOT Cash Flow Forecasting Packageoffers 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.
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!
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 future. Create a strategy today to get a different outcome in increasing your cash in the bank.
Quickly Identify, Yes or No?
Is your bookkeeper keeping your financials current? (If no – how do you make good PROACTIVE financial decisions?)
Do you have an accounts receivable process? (If not, how do you ask for money that is owed to you?)
Do you have an accounts payable process? (If not, how do you control the outflow of money against what you are collecting each month?)
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:
Get involved and don’t handle business financials alone.
Gather a team of financial experts – Save money and be rest assured that you have guidance to make the right decisions with money.
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:
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:
What is your cash on hand balance from last month?
What are your average cash revenues (not accrual revenues), monthly?
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.
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
As a CFO, I can tell you that the most vulnerable area in the financial arena is bookkeeping. In my cash flow arena, I refer to the Bookkeeper as the “Keeper of the Cash Flow”! I have learned that one of the most important things you can do to set yourself up for success as a business owner is to surround yourself with people who are great at what they do. My seat at the table in the financial arena is as a CFO/Cash Flow Strategist. Take a moment to identify who your trusted advisors are in the financial arena. Once you have the right “subject matter experts” in your sandbox, you should be able to maximize profitability and optimize cash flow!
Let me ask you:
What is your relationship with bookkeeping in your business?
You may think your bookkeeper is doing a great job, and “need” to trust that they are, but what if they are not?
Are your financials up to date or are you “winging” it with making financial decisions?
Why do you need a bookkeeper?
You and your Bookkeeper: The bookkeeper is the keeper of the cash flow. This person is the “subject matter expert” of your books and records the day-to-day transactions accurately. Please, please do NOT minimize the importance of this subject matter expert.
Bookkeeping Hazards: If you are a business owner that has employees, has credit card debt, has a business loan, and/or has clients that owe you money; you can afford to have a bookkeeper on your team. Top hazards that business owners tend to tolerate:
Doing your own bookkeeping! I encourage you not to try saving money by doing your own books. Why? This is the highest and best use of your time, and you are not a subject matter expert in “following” your own money.
Paying Bills and Accounts Payable: A bookkeeper can set up a process for entering vendor bills and producing an Accounts Payable report for you to see what is on deck to be paid in the weeks ahead.Why? It is important to control the outflow of money against money coming in. Paying bills “carelessly” is not a good discipline in the cash flow arena.
Accounts Receivable: It is a challenge for business owners to ask for money owed. Having a bookkeeper set up a process for collecting from your customers removes the uncomfortable feelings of asking for money.Why? You have a 45-day window to collect money from your customer. Each day after that it is harder and less likely that your customer will pay.
Who Signs your checks? DO NOT allow your bookkeeper to sign or pay bills through your online banking account(s).Why? This opens a potential area of fraudulent activity (EMBEZZLEMENT) that you can easily avoid by having your bookkeeper set up the checks to be signed and you sign your checks or pay online with a credit card.
One of the “Dirty Little Secrets About Cash Flow” is that most owners are not holding their bookkeepers and other trusted advisors accountable. Having good processes to manage all the bookkeeping activities helps optimize cash flow and maximize profitability. Do not minimize the importance of bookkeeping in your business. You are as good as your team.
