Did you know cash flow problems are a root cause of over 80 percent of business failures? For entrepreneurs, the problem often isn’t that there is no market for a specific product or service or that the business was out-competed. Instead, poor finances sink many firms, including those that could have thrived profitably with the correct financial management. Fortunately, the Whyte & Associates, Inc. team can provide needed cash flow management and professional accounting services in Claremont, California.
Let’s take a closer look at how professional accountants can help with cash flow management. Of course, this is only a precursory look at some major challenges and complexities. It’s wise to reach out to a financial professional if you have specific concerns.
Many entrepreneurs are busy day-to-day managing diverse business processes. Especially early on, it’s tempting to focus on the immediate future. However, one of the most common sources of cash flow issues is a failure to predict future needs, including cash and liquid assets accurately. Professional accountants can help companies put together forecasts and projections.
Accounts receivable and accounts payable are crucial. You want payments to come in quickly with accounts receivable to encourage healthy cash flow. Sometimes, switching to new payment methods can speed things up. More advanced strategies, like offering discounts for early payment, may also prove effective.
With accounts payable, it’s wise to build up relationships with suppliers that will extend payment terms for as long as possible. Thirty days is pretty standard for many suppliers, but once you have established strong relationships, they may be willing to extend 45 days or more.
Finances are complex for firms big and small. Properly managed finances could yield competitive advantages for many companies. However, mismanaged finances can sink businesses and ambitions that otherwise may have had a bright future. Working with professional accountants to monitor cash flows and address problems as they arise is wise.
If you’re in need of cash flow management and professional accounting services in Claremont, California, contact Whyte & Associates, Inc. Dial (909) 575-0080 at your convenience to speak to our team.
