Most businesses don’t manage their cash flow.
And because of this, 82% of America’s small businesses fail due to poor cash flow management skills and/or poor understanding of cashflow (Jessie Hagen of U.S. Bank, cited on the SCORE/Counselors to America’s Small Business website).
Are you a business owner or CEO who trusts your CPA to do the job while you sign your tax returns and move on to the next year’s activities? Or do you like to surround yourself with subject matter experts and take advantage of those experts’ knowledge? I emphatically suggest you aspire to be the latter type of leader! You’ve taken the time to hire the right CPA; now take the time to have that CPA educate you on what you don’t know about your taxes.
Tax liabilities can be a major component of having a cash flow problem in your business.
Ask Your CPA the “Stupid” Questions
If you think it’s a stupid question, make double sure you ask it! There can be no stupidity around money. This goes for paying (or not paying) money towards your taxes. Remember, it’s your money we’re talking about—and part of it is going toward your education regarding what you don’t know about your business and personal taxes.
Make it a goal for 2018 to be proactive with tax liabilities. That means asking your CPA to educate you on how your business taxes flow through to your personal taxes. Also when filing your return this year, create a tax strategy with your CPA by either paying quarterly tax estimates or planning to do a bonus payroll at the end of the year to tie out paying tax liabilities by end of the year and not letting them accumulate into the next year!
If you are going into this tax year without knowing what you were going to owe, you were not proactive. Let’s not repeat that again for this year!
Dirty Little Secret of Cash Flow
Be proactive and surround yourself with a team of subject matter experts who can help you get more money into your pocket!
Your CPA is one of these subject matter experts, but not the only one. Cash flow consultants, like me, help forecast cash requirements to aid in creating a strategy to pay your taxes and still have good cash flow!
An exciting new way to manage your cash flow is coming soon! I am creating a custom cash flow forecasting app to allow users to take control of their cash flow by uploading their own information to gain immediate insights. Users will be provided an 8 month view into the future of what cash requirements will look like! The product is scheduled to launch 1st quarter 2018!
Want to be part of our soon to launch beta test? Click here and sign up on our online form at the bottom of the page.
On Your Team
With me on your team, you’ll get an accurate understanding of the financial health of your business and learn empowering, forward-looking cash flow strategies. Interested in learning more? Want a free consultation? Contact me now.