Cash Flow Management
It is a cliche' but so true in our industry, "cash is king!" Even more important and significant is cash generated from your business itself. Why? Good cash flow from your business operations is an indicator of your financial health and stability. Bankers like it, vendors like it and you like it...you sleep better!
This section offers some insights and resources on cash flow. There are even some links to worksheets and articles to help you in this area if you are new to it. But at the end of the day, this area can get complicated and a good accountant or a financial advisor can be well worth the investment.
As we all know, Accounts Receivable are a necessary part of any business that must be managed with diligence and care (we are assuming accrual basis in this discussion.) Extending credit which creates your accounts receivables is often necessary because you want the work and must agree to some kind of payment terms with the customer. […]
We’ve all heard or read about “quality of earnings” but have you ever stopped to think about what that means to a green industry contractor or why it’s important? According to Investopedia, “…firms with high-quality earnings typically generate above-average price to earnings multiples (higher stock prices). They also tend to outperform the market for a longer time. More reliable than other earnings, high-quality earnings give investors a good reason to pay more.”
Perhaps the single most challenging issue for small businesses today is the ability to generate a positive cash flow. A business’ ability to bring in more money that it spends in delivering its goods and/or services to the market on an on-going basis seems simple enough but yet in reality, we all know better. It […]
You already know that your company’s revenue and profits play a big role in the value of your landscape business but do you know the impact of cash flow and your landscape business valuation? Cash flow is different than profits in that it measures the cash coming in and out of your landscape business rather than […]
Additional Cash Flow Articles
- 10 Tips For Better Managing Cash Flow from Quickbooks.Intuit.com/r/ (Intuit's Small Business Center)
- Why Cash Flow Is King from Quickbooks.Intuit.com/r/
- Cash Flow Analysis for Your Business from U.S. Small Business Administration
- An Explanation of Cash Conversion Cycle from Inc.
- Peaks and Valleys of Cash Flow and Revolving Credit from Kabbage
- Managing Small Business Cash Flow and Answers To 10 Common Questions from U.S Small Business Administration
- Cash Conversion Cycle from Inc.com
- Six Ways to Manage Cash Flow as a Seasonal Business from U.S. Small Business Administration