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Increase your cash flow
Neha Patel

Step Up Your Game and Increase Your Cash Flow

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Increase your cashflow

Business is all about money.  When you run your own business, you want more cash coming in than is going out.  There is a lot of cash flow involved in any company, from business expenses like rent and payroll to profits and revenue.  It is important to track all of the money going in and out.  This is where bookkeeping consulting services come in.  Having good NC bookkeeping and accounting can help your business succeed.  How can you step up your game and increase your cash flow?  Here are some ideas.

What Is Cash Flow?

Cash flow refers to the movement of your company’s money, specifically where the deposits in the bank come from and what those payments end up being spent on.  Positive cash flow is when you have more money coming in than going out.  Negative is the opposite: when you owe money but can’t pay it.  That’s what you don’t want to happen.

These are tracked and reported through a report.  This document lists the opening and closing balances of your business’s bank account at the beginning and end of each month.  It also shows where all those deposits and withdraws came from, sort of like a bank statement.  Whether you use bookkeeping consulting services or have someone in house do your accounting, you should look at these reports regularly.

Why Is It Important to Track Cash Flow?

Cash flow is obviously important for your business to continue to run.  If you don’t have money coming in, you can’t make payments.  Let that continue for long enough, and your company will grind to a standstill.  This is why NC bookkeeping is so important.  You don’t just need to know about how much money your business has made.  It’s important to know how much actual cash you have on hand at all times as well.  That way if you have to make any payments, emergency or otherwise, you know right away if you’ll be able to do so.

Ways to Increase Cash Flow with Bookkeeping

Your business can have a more positive cash flow by bringing in more money and spending less.  That is easier said than done, of course.  There are many different strategies for having better cash flow.  Here are some directly related to NC bookkeeping.

By looking at your reports, bookkeeping consulting services know what times of the month you have the least amount of money on hand.  You can easily switch this around by changing the dates for payments.  Let’s say you send out invoices on the last day of every month and have customers pay you within 30 days.  If your rent and utility payments are due on the 20th, money will be tight that last week of the month before more comes in.  This can be resolved by switching the dates of either your loan payments or your invoices so they line up.

Data like this is made clear when you have good bookkeeping.  Easy-to-read cash flow reports show you where the most money is being spent.  This helps you decide how to cut costs.  They also give you insight into areas of growth so you can capitalize on that success.

Bookkeeping Services Near Me

Need help increasing your cash flow?  Try bookkeeping consulting services from Bluefire Accounting.  Their accurate, insightful reports will help you know your business better and continue to lead it to success.  Call (704) 979-4334 or visit Bluefire Accounting online to schedule a free strategy session today. 

Person on iPad doing cash flow
Neha Patel

Maintaining Healthy Cash Flow

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Person on iPad doing cash flow

Cash flow is the reason you are in business. It is also the ultimate indicator of success or failure. If you have cash flow problems, you are not alone. Plenty of businesses go through multiple slumps, and with the times being as hard as they are, I assure you that you are not alone. There are a few things that you can do to help maintain a healthy cash flow when times are tough. Let’s take a look at what cash flow is and how to keep it on the up-and-up:

What Is Cash Flow?

Cash flow is a fancy (and more comprehensive) term to describe the money that your business brings in. A healthy business cash flow means that your business makes enough money to turn a profit while covering all expenses that your business entails. Negative cash flow means that your business is making money, but that the money that it makes is not sufficient to pay the bills or cover the overhead costs of your business.

Avoid Inconsistent Clients

One of the things that I have learned is that inconsistent clients can bring hardship later on. Having inconsistent or wishy-washy clients means that you cannot always count on them for consistent business. Having gaps in revenue can be devastating. You need to be sure that the clients that you take are consistent and ready to commit to regular business.

Spread Out Payments

It is never a good idea to allow coinciding payments. Having the minimum amount of money leaving your business accounts at any given time is always best. When you have multiple payments occurring at the same time, it is hard to know exactly what is going where. It is also harder on your finances for large sums of money to leave all at once. If you can stagger your payments, you will be in a lot better shape.

Keep Accurate Records

Keeping accurate records will give you a clear picture of how your business is doing. It will also allow for maximum reimbursements come tax season. Another benefit of keeping the most accurate books as possible is the peace of mind that you will not run into any trouble with the IRS. Small mistakes can add up quickly, cost you money, and even cause legal trouble.

Hiring a professional bookkeeper can save a lot of hassle and a lot of time. I know from experience that time is money. If a task like bookkeeping is keeping you from giving your business the attention that it needs, it can cost you money. There are always important decisions to be made. If you know exactly how your finances are holding up, you can make important decisions as soon as they arise. 

Hire the Best

When it comes to entrusting someone with the financial health of your business, you should not settle for second best. You will need someone who can report accurate figures on a regular basis. Communication is key. Be sure that you have a good rapport with your bookkeeper and have the opportunity to communicate clearly and effectively with them.

BlueFire Accounting has the experience and expertise that your bookkeeping requires. We are committed to reporting to you throughout the year, not just at tax time, and to doing so in a way that is easy to understand. 

Be sure to check out our website in the link above and set up your free strategy session. The best plan is to have a plan. Be prepared to take your business to the next level with the organization that it deserves.