Cash flow is always an important element in the smooth and successful operation of your business and is particularly key in meeting opportunities and demands.
Generating sales and managing operations are, of course, also important, but ensuring that cash from those sales is collected and that your company’s daily cash flow needs are managed efficiently and effectively is even more important. And this is particularly true when the economy goes into a slump. Your business’s resources can be stretched to the max and you may find yourself scrambling to keep up with your own accounts payable, let alone worrying about your receivables. So proper planning is paramount to be able to better avoid a serious cash crunch in the future.
As one step in that planning, it’s wise to diagnose your company’s cash flow health and ferret out any weaknesses that could create problems down the line. To that end, here is a checklist to help you get a picture of just how healthy your cash flow is.
If you answer “no” to any of the above questions, you may have profit and cash flow leaks in your company. Take steps to plug the holes before you face significant financial damage. Remember, MKS&H has CPAs on staff who are well-versed in cash flow management. Please do not hesitate to contact us should you need assistance with any of the above matters on the checklist or the current procedures you have in place for your company.
McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.