Loftis Consulting & Financial Management

Cash Flow Management and Improvement Plans

The principle for good cash management is cash inflows are more than cash outflows.

Sounds simple but not getting this right is often a major cause of for-profit and non-profit business failures. There are so many ways that businesses miss the mark on cash flow management:

  • Underestimating tax liabilities for distributions to owners
  • Lacking an understanding of the peaks and valleys of the business and how to manage it
  • Failure to manage peaks and valleys of expenses as it relates to funding sources
  • Failure to plan appropriately for large future cash outflows such as quarterly tax payments, employee bonuses and inventory restocks

At a minimum, your business should have a month-by-month cash flow forecast for at least 3 months. Optimally, you should project cash flow needs for a 2-year period in order to plan financing for projected periods of shortfalls or investment plans for periods of excess cash.

As your CFO consultant, we can help you effectively project your cash flows for the short-term and long-term for maximum value and peace of mind regarding keeping the lights on. Plus, we are always available as a sounding board for your thoughts and ideas regarding your business. Click to learn more about our part-time CFO consultant services.

If you are ready to take your business to the next level, call today at (312) 772-6105 for your free consultation or to learn more about what we have to offer.

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