Many business people would unequivocably say “YES!”… but I’m not asking if more CASH is better… I’m talking about cash flow.

When thinking along those lines, the answer can be a definite ”NO”.

So why can a lot of cash flow be a problem?  Namely, it’s because it means that you might not be investing your cash in the wisest way.

This is where working with a virtual CFO can really come in handy.  Otherwise, you might just be allowing your cash flow to gush when it would better be conserved.  And that would be a waste.

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While there’s nothing innately wrong with doing so, might I suggest that you hire a CPA before going forward with the idea?

A trained CPA will be able to assist you in making certain that you’re starting on the right foot (or the left foot, if that’s the foot you should start on depending upon your goals and industry!)  He or she will also be able to help you maximize cash flow from the get go.

There’s not any reason NOT to start a business now… it’s as good a time as any.  Just be certain to hire a CPA to increase your chances of success.

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Though many people fall into this kind of trap, it’s a bad idea and not a long-term solution at all.  If you’re making any kind of a profit (and if you aren’t, it’s time to rethink your sales and marketing plans), you need to start paying the top dog — YOU!

How much should you give yourself as a salary?  It all depends upon a number of factors… which is where the help of a virtual CFO can come in handy.  A virtual CFO will assist you in making sure that the paycheck you receive is fair without hurting your company. 

Remember — taking a paycheck isn’t selfish.  It’s a smart business move.

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While this “in-one-door, out-the-other” style of managing your cash flow isn’t unusual, it’s also not a method for achieving long-term success.  Essentially, you’re just breaking even.

With the help of a virtual CFO or a CPA, you can determine the wisest ways to make the most of the cash coming into your business so you don’t allow it to slip needlessly away.  Even if you can only put aside a small portion of it each month, you’ll be ahead of the game down the road.

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It’s a phrase that has become more and more common throughout the years.  And if you’re working with a CFO, it’s time to have “the credit card” discussion.

What should your conversation look like? 

Check out these questions from which you can springboard a talk:

If you’re not currently accepting credit cards, you and your CFO can do the following…

→ Using financial and sales metrics, evaluate if you’re missing out on sales by not offering this as a payment option.

→ Thinking in the future, could you afford the costs associated with processing credit cards?

→ Looking at your bottom line, how would credit cards help you?  How could they hurt you?  Would you have to raise prices?  Is that feasible?

On the other hand, if you are currently accepting credit cards, you and your CFO can do the following…

→ Looking through your balance sheets, determine if your clients are using credit cards often.  Which ones are?  Which ones aren’t?  Has it increased sales?

→ Examining which credit cards you accept, are they the best ones for your business right now?  Are you getting the best rates possible?  Should you look into different or additional credit cards?

→ Thinking about the future, would it benefit your company to move almost all payments to credit card payment options?

Again, depending upon your situation, you’ll have a variety of responses.  And this won’t be a meeting that can be resolved in a day (unless you’re a very small operation.)  But it’s a pertinent discussion to have and you’ll be happy you took the time to evaluate your business situation.

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If you found yourself nodding at any of these items, you’re not alone.  Most companies talk a great deal about moving to a “paperless” system, but it can be darn difficult.  That’s especially true in the area of fiscal management.

While it may not be possible to go entirely without saving or printing on paper, you probably do have some alternatives that can lessen the load that storing reams and reams of paper can present:

1.  Try moving to online banking where you can pay some of your bills with ease.  Just make sure you’re doing this as safely as posssible to mitigate any security breeches.

2.  Unless you have to print off paper invoices, try to move to a different system that requires no paper at all, such as via email or a secure payment system.

3.  Rather than printing documents, consider saving them on a protected server (offsite if you feel safer). 

By taking these measures, you can help cut down on all the “stuff” in your workplace and streamline your accountancy processes to boot!

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How many times have you said that about everything from calling a prospect to finishing your billing for last month?

As humans, we tend toward procrastination from time to time (or more often, in some cases!)  While that can be okay for some things (e.g., if you don’t vacuum your rug today, no one will probably care), it can be devastating for others… such as cash flow.

You need to get on the ball and start making that cash flow for you now… not tomorrow or the next day or next month or… well, you get the picture!

Not 100% convinced?  Give me five chances to sway you:

1. If your cash isn’t “flowing”, you’ll be unable to pay your bills.  That means you’ll have no business.
2. The tax laws are always changing.  Get your finances in order now so you can be prepared when they come!
3. You may not be on top of collections, which will only hurt YOU.
4. Good cash flow is the sign of a strong business.  If your cash flow isn’t strong… well… you can fill in the blanks.
5. When you have good cash flow, you can tell potential employees (or even clients) of that fact.  It speaks volumes about the way you run your organization.

Get your cash working for you immediately.  Give me a call and we’ll talk about how to unclog your cash “drain”!

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CPAs actually work 12 months out of the year, though our press is frequently limited to January 1 through April 15.  (And it’s more so toward the latter date than the former!)

If you’ve never worked with a CPA to help plan your business, I encourage you to start now.  A well-rounded CPA will be able to guide you through the waters of this strange economic landscape and enable you to make the most of your current financial situation.  Together, you’ll be able to tackle each obstacle and uncover each opportunity with panache.

What’s not to like about this kind of partnership? 

Best of all, when tax time DOES roll around (and it always happens sooner than you expect, doesn’t it?), you’ll have a CPA on board who can efficiently handle the paperwork associated with your taxes.  It’s a win-win!

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It’s not that your CFO wouldn’t be able to do the basics of his or her job without understanding technology; after all, an abacus will add as well as a computer will.  It’s just that the further away from the latest technology that your CFO gets, the harder it will be to:

a.  Get him or her to take advantage of software that could make him or her a whole lot more efficient.

b.  Get him or her to contribute to a blog, Facebook business account, Twitter page, etc.

c.  Get him or her to relate to modern business concerns that are technology-related (like why you need to pay a firm to offer offsite data storage or co-location services.)

If your traditional or virtual CFO isn’t able or willing to step up to the plate, it may be time to make some hard decisions.  Technology is only going to change more and more radically.  You cannot afford to have your organization left behind.

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For instance — are you playing roulette with your company’s finances?  You may not realize that there are financial management choices you’re making that are actually putting your business at far too great a risk. 

Perhaps it’s the way you’ve structured your billing or the method you’re using to pay your employees or vendors.  Maybe you’re just not being wise with the ways you’re allocating the revenue that’s coming into your organization.

If you’re not 100% sure that you’re being proactive about the risks your company faces financially, I encourage you to get help from someone who understands.  There’s no reason to put your business in harm’s way, especially when so many risks can be thwarted. 

And, of course, if you’re looking for a virtual CFO, I’d be happy to provide you with a free telephone consultation.  Just email me today at Scott(at)FinancialFutureCFO(dot)com.

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