Sound financial management means knowing the cash flow for your business, forecasting your cash needs, planning your borrowing strategy so you have cash when you need it and having financial records that show your payback ability.
Even a business with respectable sales volume can have cash flow problems, and it is often due to poor financial planning.
To assure your business of cash when it needs it, let us prepare a cash flow projection, that is, a forecast of the difference between cash coming into the business and cash going out of the business.
BY KNOWING YOUR CASH POSITION NOW AND IN THE FUTURE, YOU CAN:
- Make certain you have enough cash to purchase sufficient inventory for seasonal cycles
- Take advantage of discounts and special purchases
- Properly plan equipment purchases for replacement or expansion
- Prepare for adequate future financing and determine the type of financing your need
- Show lenders your ability to plan and repay financing