Did you know that 82% of businesses fail because of cash flow problems? That’s why, as a business owner, it’s important that you take the steps needed to ensure that your cash flow situation is under control.
With that being said, there are a lot of variables that can affect cash flow, both negatively and positively. And as the times change, so do those variables, which can make it hard for any business owner to keep up with the latest laws and regulations.
That’s why hiring a CPA is something that you should consider doing in the near future. A CPA will help monitor your cash flow, among other things, and even help you create a cash flow projection so you can predict your financial future.
But is a CPA really necessary? And can a CPA actually help you run your small business more effectively?
The short answer? Absolutely!
In this article, we’ll tell you why a CPA is a must for any business owner, especially when it comes to managing and projecting cash flow.
Now then, let’s get started!
Creating a Cash Flow Projection
A wide variety of things goes into creating a cash flow projection and it can get a bit overwhelming. A CPA will be able to sit you down and fully breakdown your cash flow situation and project what your future looks like going forward.
Each business has its own set of unique variables that can hurt or harm cash flow. A CPA can look at your business and determine the proper steps to take to ensure your cash flow stays healthy.
Some of the things that can positively or negatively affect your cash flow are things you probably haven’t even thought about. With a professional by your side, you’ll have one less thing to worry about, as you’ll know that everything is covered and you’re good to go cash flow wise.
Knowing Where Your Assets Are
As a business owner, it’s crucial that you know where your assets are at all times. For instance, if your assets are tied up in inventory, and you’re not moving products fast enough, you can create a massive cash flow problem.
With the help of a CPA, you’ll be able to accurately track where all of your assets are in any giving moment. This can help prevent you from getting into any kind of a cash flow issue.
Monitoring How Much Your Making and Spending
It may sound obvious, but spending more money than you’re making can lead to a huge cash flow problem that can ultimately lead to the demise of your business.
While you can try your hardest to accurately track the amount of money that is coming in and out of your business, it’s best to bring on a professional.
A CPA can help you manage your accounts payable and receivable, allowing you to rest easy knowing that a pro has your best interest in mind. Delegating some financial aspects of your business will also free up more time for you to focus on other things that you’re much more familiar with.
Outsourcing Payroll Management
If there’s one area that small business owners should consider outsourcing, it’s payroll. Not only is handling payroll in-house tedious, but one small mistake can really create a major headache that requires a professional to fix.
By outsourcing payroll, you’ll be freeing up time and letting professionals handle the work for you. That expertise can help prevent small mistakes, and even larger ones, which can come back to haunt you come tax season.
Staying Up to Date on Tax Laws
Regardless of where you live, tax laws and other regulations are constantly changing. As a result, it’s imperative that you stay up to date with these laws to avoid any sort of problems in regard to cash flow.
For instance, failure to follow through with a new tax could result in a big a penalty down the line, which could be the nail in the coffin for a small business.
With a CPA, you’ll have someone watching your back who has no choice but to stay up to date with the latest tax laws in your area. This peace of mind is priceless, and one of the many benefits of hiring a CPA.
Speeding Up the Invoicing Process
Believe it or not, one of the biggest issues in regards to cash flow is a slow billing process. Oftentimes companies, especially small businesses, don’t have the time or the resources to bill promptly.
This prevents them from getting cash back into their bank accounts quickly, and thus, disrupts their cash flow.
Hiring someone to handle the invoicing process will allow you to get those invoices sent out quicker. And obviously, the faster you get those invoices out, the quicker you can get the money back into your bank account.
Using a CPA for Cash Flow Projection
Well, there you have it! Those are just a few reasons why hiring a CPA to deal with cash flow projection is a great idea for any business owner!
Remember, a CPA is a trained professional that understands all of the latest laws and regulations. They’ll help you prevent small mistakes that can become big ones down the line, as well as manage your cash flow correctly.
Perhaps best of all, they’ll free up the time you currently spend doing this yourself so you can focus on other aspects of the business moving forward.
Interesting in speaking with a certified CPA? Contact us today, we’ll be glad to assist you!
