Cash Flow Management Aberdeen SD
Investment Centers of America
Schwan Financial Group, LLC
Areas of Specialization
Raymond James Financial Serv
Average Net Worth: Not Applicable
Average Income: Not Applicable
Profession: Not Applicable
Mon-Fri 09:00 AM-06:00 PM
Sat 09:00 AM-01:00 PM
Eide Bailly Financial Services
Areas of Specialization
Business Succession Planning, Comprehensive Financial Planning, Investment Management, Wealth Management
Average Net Worth: $1,000,001 - $5,000,000
Average Income: $100,001 - $250,000
Profession: Self-Employed Business Owners
Mon-Fri 07:30 AM-06:00 PM
Sat 09:00 AM-12:00 PM
Private Client Services
Mon-Fri 08:00 AM-05:00 PM
Sat-Sun Closed After Hours call toll free: 1-866-460-8470
Priming the Pumps for Better Cash Flow
February 1, 2008
(February 2008) You may be profitable, but are struggling every month to pay your bills because you don't have a handle on your cash flow. Understand the invisible drains on your money and learn ways to get better control over your cash flow.
Cash flow is the movement of money that goes in and out of your business. You need a constant flow of money in so you can pay your employees, vendors, and yourself, and service your debt-especially in tough economic times. To operate successfully, especially as the economy moves into or already is in a recession, you must have a handle on where your money is at all times-what's coming in and what's going out. To do this, understand how cash flow works and how you can manage it better.
Your business collects money in three basic ways: from operations (the sale of goods and services), from investments in and by your company (investments by you and other investors in your company and profits on the sale of company assets), and by financing (the proceeds of loans or other borrowing).
Money goes out of your company for four main reasons: paying expenses (salaries of employees, taxes, etc.), investing in assets (buying property and equipment), paying owners (draws to owners who are not employees and dividends to shareholders), and servicing loans and other debt (repaying principal).
Invisible drains on cash flow
Not every penny you pay is an expense you can subtract on your profit and loss statement. Some outflow is, in a sense, invisible; it still drains cash flow:
Getting a better handle on cash flow
Despite having significant sales, you can struggle from month to month to have enough cash on hand to pay your current bills. There are two main ways to attack cash flow:
Bring more money in by:
Reduce out-flow by: