Your cash flow is the money which moves into and out of your business. Managing that flow, so you always have cash on hand when needed, can be difficult, even if your business is doing well.
Hiring an accountant to manage your cash flow is usually the best option. By allowing a professional to implement strategies and measure results, you’re free to concentrate on running your business and serving your customers.
However, your accountant shouldn’t be completely on their own. The more information, access and general help you can provide, the more successfully your cash flow can be managed. Here’s how to find an accountant and what they can do to help you.
1. Contact an Accountant in the Early Stages of Business Development
The best time to involve an accountant is when you’re writing a business plan. An accountant can help you develop realistic financial projections and timetables.
Of course, most people aren’t flush with cash when they’re first starting out. But hiring an accountant early sets you up for financial success down the road.
2. Hire an Accountant for Services as Needed
Accountants are often more affordable than many business owners realize. You don’t have to hire an accountant on your staff or keep one on retainer. Instead, you can visit an accountant for one-time services as needed. Common services provided include:
• Business plan review
• Taxes and tax audit services
• Help with loan applications
An accountant can help you handle any complex financial issues which you don’t understand. But an accountant is also useful for completing simpler stuff which you do understand, such as basic tax stuff. Hiring an accountant frees up your time to run your business.
3. Allow Your Accountant to Track Flow Cash Flow
An accountant can help track your cash flow, which is the term for all incoming and outgoing funds. Typically, tracking cash flow involves:
• Managing all incoming funds
• Arranging payments to supplies and partners
• Tracking extra cash and unexpected losses
You can track your cash flow yourself, but an accountant will likely be more accurate. Ideally, your business is large enough for an in-house accounting team, as they’ll be able to understand the ins and outs of your specific business.
However, you can also hire an accountant to help you develop a cash flow plan. They can organize payments with vendors and clients. For the most part, you can then run your business according to the created plan. If problems develop, you can then contact the accountant for help.
4. Follow Your Accountant’s Advice
Your accountant can do more than manage your cash flow from month to month. They can also help forecast the long-term financial health of your business.
A general expense forecast can easily be created by analyzing costs such as overhead bills, payroll, investments and other costs. Forecasting helps you prepare for leans times and unique expenses to ensure your cash flow remains positive.
Of course, your accountant needs accurate information in order to develop accurate cash flow forecasts. Help your accountant manage your cash flow by always providing thorough, accurate information about your business as well as your plans for the future.
Additionally, don’t be afraid to ask questions. A great accountant should be able to explain complicated financial information to you in a simple, common sense way.
5. Use Non-Traditional Funding When Necessary
Even with accurate cash flow forecasting, unexpected events can deal a harsh blow to your finances. Broken equipment, production mistakes, fraud and other calamities can strike a business of any size. While a large business typically has enough cash on hand to cover most emergencies, smaller organizations might need immediate funding from an outside source.
Non-traditional funding is often the fastest and most effective way for a small business to receive between $5,000 and $750,000 in just a few days. The qualifications for approval are far less restrictive than traditional bank loans. Even businesses with poor credit can find working capital from non-traditional funding through One Park Financial. Visit oneparkfinancial.com or call 855.218.8819 to learn more about your options for fast, flexible access to working capital for your business.
Your accountant is a valuable partner is managing the money flowing into and out of your business. You and your accountant can work together to develop a cash flow management plan which will keep your business financially healthy both today and into the future.