Cash is King and It Can Be Managed
Last week my family and I celebrated my oldest daughter’s 12th birthday. Generally my husband and I will ask each one of our children what they want for their special day, about a month in advance. My daughter was adamant this year, no gift cards, no clothes, she wanted cash gifts only. For a month I continued to ask if she was sure that was what she wanted and her response was, “yes mom, because with cash I can get exactly what I want.” She was right and that is what we gifted her with.
Cash is a great gift; it can be used to purchase anything. In business it’s the one asset that answers multiple problems. Yet it’s still the one thing business owners have the least of and have the most questions about. Many of our clients during these trying times are wondering how much cash they will have on hand in three months or do they have enough cash now to sustain the business if there is another shut down? These are tough questions but they must be asked and procedures can be put in place to properly manage your company’s cash flow.
So what is cash management? Cash management is the system in which cash flows are collected and administered. Cash management is important for companies as it is a key component of a firm’s financial security. Since cash is the primary asset of a business, it’s important to have an understanding of the weekly or monthly cash inflows and outflows. Implementing cash management is a must no matter what the state of the economy.
As adamant as my daughter was concerning her cash gifts, as a business owner you have to be as determined to ensure that the inflows and outflows are properly managed. Remember cash is king AND it can be managed.
At Lance CPA we are equipping our clients with the tools necessary to execute a stable cash management system. Our clients who utilize our cash management services and strategy meetings have a strong grasp on their business’ future. The cash management services we provide gives the owner security in making proper business decisions based on real time information related to their cash position.
If you are a current client and do not have cash management in the scope of services with us please feel free to inform your Lance CPA accountant that you would like to add it. We are in this together and the more tools and successful financial systems your business has in place, the more successful your business can be. Contact us to learn more!