Making sure that you have a good cash flow forecast in place is paramount to most businesses. You really want to be able to plan accordingly. Even if you expect that all of your accounts receivable are going to come in on time, all of your bills are going to go out as they should, you never know what might happen.
There might be some tenant improvements that you need to make.
There might be some new employees you need to hire.
There might be somebody's laptop that crashes and now you need to go buy two or three more laptops.
There are all sorts of things that come up in a business and if you're not planning for times that are unpredictable, then you might be setting yourself up for failure.
So for us, at Optima, we want to make sure that every single client has a cashflow forecast.
Now this means how much cash do you have right now and how much are you going to have at the end of the quarter? I actually like to do it out for the entire year and then readjust it weekly and know, okay, this is my plan right now.
What is my plan going to be a year from now?
How much cash am I going to be able to put in the bank?
And then how much cash am I going to be able to invest back into my business, invest in my employees?
So having an accounting team that is proactive and looking at your financials, looking at your cash, on a very regular basis, is going to help you prepare better for the future. For all of your accounting needs contact Optima, we can help.
CFOs Help Businesses with Financial Balance and Discipline