Louisville Cash Flow & Budget Analysis
Cash Flow Budget and Analysis may be your most important focus to grow your business. Cash flow is the money that “flows’ in and out of your business. Cash flow can be positive (more flowing in than flowing out) or negative (more flowing than in.) But cash flow can also be understood as real cash you have on hand to buy inventory, meet payroll, pay bills, and save for growth.
Positive cash flow can be severely affected when customers are slow to pay, or simply from spending mismanagement or cost overruns.
To put it simply, cash is king and cash budgeting is crucial to a thriving, successful business.
Located in In Fern Creek, Louisville, Parson CPA’s Cash Flow and Budget Analysis services will analyze your business’s spending, minimize or eliminate cost overruns, look for potential vendor discounts. This results in improved liquidity, a re-balanced budget and reduced overall debt, which improves your cash flow.
Solving Negative Cash Flow
If your business is suffering from negative cash flow, you should be hearing DEFCON 1 alarms. And increasing sales may not even be the solution!
How can that be? Well, what if your receivables are slow but your inventory costs are immediate? This leaves you at a cash deficit, which is a very troubling situation.
The good news is Parson CPA can correct these issues with a bit ingenuity and even by suggesting a little negotiation with your vendors.
Cash Flow Budget and Analysis
To help our clients, we begin by assessing how much actual cash you have available today, then we forecast where it should be at specific milestones. We then assess whether your projected and actual expenditures match, and if any variance appears—especially one of a negative cash flow—we’ll help you figure out how to correct that.
We can analyze your business cash flow weekly, monthly or quarterly. We do so by examining the following areas:
- Net income
- Accounts receivable
- Accounts payable
- Short term debt
- Long term debt
- Asset purchases
- Asset depreciation
- Net cash balance
Positive cash flow always places your business in a better position, especially if you are focused on growth.
Parson CPA’s Cash Flow and Budget Analysis services can make all the difference for your Louisville business! We can help you increase positive cash flow and profitability, by looking deeply into your receivables payment patterns and then help you determine the best options to meet your payable obligations. We’ll even help you anticipate potential problems that may arise once you get started on your new and improved road to greater profitability.