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Accounting Software  

Types of Accounting Softwareaccounting software

 

Every business needs accounting software whether it is an association, a non-profit, a professional services provider, or sells retail products and services. What is Accounting Software? Accounting software automates an organization’s financial functions and transactions with modules including accounts payable, accounts receivable, payroll, billing, general ledger, and much more. It is difficult enough for business owners dealing with the daily operations of a business, streamlining workflows and standard operating procedures for efficiency, keeping employees and customers happy, organizing paperwork, creating financial reports which impact strategic decisions, in addition to accounting and bookkeeping. Eighty two percent of businesses are unsuccessful because of inadequate accounting practices and cash flow management.

Choosing the best accounting software is confusing. There are thousands of options on the market which offer custom options for specific business needs. Overwhelming, right? Eighty nine percent of small to mid-sized businesses insist they are more successful with an accountant or advisor and accounting software. Consultance Accounting is just what your business needs! Consultance Accounting is a technology-based accounting firm with the vision and expertise to deliver streamlined, user-friendly and cost-effective accounting services. We partner with best-in-class technology firms to create a customized platform that will tangibly reduce the amount of time and effort you must spend on your accounting activities while receiving the highest quality accounting services. The results will be streamlined document management, improved cash management, and real time metrics and analytics that provide you with greater insights into the financial health of your organization.

 

The Consultance team is comprised of highly trained and experienced experts in the field, who are fully certified in the technology platforms we offer our clients.

Our Accounting Software Technology Partners Include:

  • Expensify:

Take the hassle out of expense reporting! Using Expensify, Consultance Accounting can automate your organization’s entire receipt and expense management process and sync it with QuickBooks to give you real-time expense reporting. We can customize how expenses are coded to QuickBooks expense accounting, customers/jobs, classes, locations, items, and more!

  • TSheets:

Improve your time management and job costing! Do you need to track employees’ time? Do you have an automated process in place? Let us show you how well TSheets can integrate into a customized accounting solution for your business or organization. We can customize it to your organization’s specific needs and your industry’s requirements. We can also set-up Tsheets using mobile options such as text messaging and dial-in for standard feature phones or deploy native mobile apps for Android, iOS devices, and touch screen mobile apps for other smartphone options such as BlackBerry and Windows phones.

  • Fathom:

Visualize your financial data in ways that make sense! Fathom is a suite of in-depth analysis tools and metrics that we use to help you assess business performance, monitor trends, and identify opportunities for improvement. These tools and metrics help us assess profitability, cash flow, growth, and other key performance indicators (KPIs) that are meaningful to your business. We will create dynamic reports and dashboards so you’ll always be prepared to present to a client, report to a bank, or update your management team on your organization’s financial performance.

  • QuickBooks:

QuickBooks Online is at the heart of all our clients’ accounting solutions! More than 2.2 million small to medium-sized organizations use it successfully every day around the world. As a certified QuickBooks partner, you can be assured that we will transform accounting tasks that are currently complicated, time consuming and expensive and make them quick, easy, and cost-effective to manage. We will do the tedious, heavy lifting reliably and accurately when we set-up your account and every month afterwards. And we will probably do it for less than you are paying now.

  • Bill.com:

Automate Payables and Receivables! Accurately tracking and processing purchases, sales, invoices, receipts, payments, and receivables require a lot of attention. This is especially true if your organization is paper based. By working with Consultance to adopt Bill.com, your organization can scrap the paper-based processes that are eating up time and adding to expenses for in-house bookkeepers to handle bill payments. On the receivables side, you will be able collect your money two to three times faster by moving payments online and giving your customers more payment options, including credit cards, PayPal, or direct debit from their bank.

  • Hubdoc:

Go paperless to cut cost, increase accuracy, and reduce time! The promise of a paperless accounting system is fulfilled with our implementation of QuickBooks and Hubdoc. Hubdoc automatically extracts key information from your receipts, invoices, and bills putting an end to data entry and filing of paper documents. Consultance Accounting will work on your behalf to set up your accounts with vendors, banks and lenders so that Hubdoc automatically pulls your accounting source documents into one secure hub. Every time a document is fetched or uploaded, Hubdoc extracts the key data and seamlessly creates entries in QuickBooks Online and Bill.com with the original documents attached.

  • LivePlan:

Using LivePlan, we can help create your business plan! As part of our service offerings to our clients, we use LivePlan as a tool to help with business planning. In no time at all, you will be planning marketing activities, dreaming up products and service offerings, and creating essential financial projections. Live Plan works for any type of organization, at any stage in its development. It is the best way to grow your business and keep it financially healthy.

 

Consultance is committed to providing the most technologically advanced accounting software solutions available. Our commitment to continuous innovation improvements enables us to provide you with real time access to your financial information in the most useful formats possible and to improve the financial health of your business or organization. Contact Consultance Accounting to learn more.

What is Business Process Reengineering

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 What is Business Process Reengineering ?

Management Strategies

The Hartford discovered, in a 2018 survey of 1,005 small business owners, 63% said they plan only a year (or less) in advance. Successful businesses prepare well into the future by implementing a business management strategy. A business management strategy (BMS) is a methodical plan designed for developing and executing the business management process most efficiently to achieve the organization’s strategic goals and objectives. A well-known business management strategy is business process reengineering.

 

What is Business Process Reengineering

Business Process Reengineering (BPR) is also referred to as business transformation, business process redesign, or business process change management. It started in the early 1990’s so management could concentrate on adapting to evolving technology and other forces in their specific industry. The focus of BPR is reevaluating and updating business systems to efficiently accomplish numerous improvements in the business’ processes. These changes include reducing operational cost, improving quality and customer service, and staying competitive. BPR utilizes a logical approach for evaluating process weaknesses, identifying gaps, and taking advantage of opportunities to simplify and enhance business operations.

 

Advantages of BPR

  • Appropriately concentrates on the business as it revolves around customer needs
  • Builds a strategic view of operational procedures by questioning how processes are improved and how things could be done more efficiently
  • Eliminates unnecessary activities
  • Reduced the number of checks, controls, and reconciliation processes
  • Reducing organizational complexity
  • Provides improved sustainability and competence to an organization by eliminating lag and unnecessary phases of management and operations
  • Overcomes short-sighted approaches that usually emerge from excessive concentration on functional boundaries
  • It coordinates and integrates several functions immediately

 

The Reengineering Process

Bhudeb Chakravarti is a business leader in India among many other remarkable endeavors. Chakravarti developed INSPIRE, a seven-step framework to successfully perform the business reengineering process.

 

The Steps Include:

Initiate a new process reengineering project and prepare a business case for the same Negotiate with senior management to get approval to start the process reengineering project

Select the key processes that need to be reengineered

Plan the process reengineering activities

Investigate the processes to analyze the problem areas

Redesign the selected processes to improve the performance

Ensure the successful implementation of redesigned processes through proper monitoring and evaluation.

 

 

Consultance Accounting’s BPR Services

Successful businesses must be competitive, efficient, and adaptable especially with the ever-developing technological world. Consultance Accounting’s BPR service utilizes our knowledgeable business experts who inspect your business from all angles, evaluate your processes and reengineers it to help your business surpass the competition. We can modernize your business work flows, create standard operating procedures, and eradicate inefficiencies.

Our inclusive tools will identify opportunities to reduce the time and effort spent on your back-office accounting functions, while providing you with timely and steadfast information so you can make more informed business decisions.

 

Our Thorough Analysis Includes:

An evaluation of your “current state” to understand your overall goals and business

A comprehensive Needs Analysis, to understand your desired “future state”

Discussions regarding your current pain points

Recommendations to reengineer your accounting operations

A detailed implementation plan to achieve your desired future state

 

What Do Accountants Do

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What Do Accountants Do

 

What Does an Accountant Do?

A study conducted by Intuit, the creator of QuickBooks and other financial software, discovered 89% of small businesses say that they are more successful with an accountant or advisor. Why? What do accountants do? Accountants do a lot more than people think and they can assist a business at various stages of growth.

The U.S. Bureau of Labor Statistics (BLS) explains that accountants and auditors prepare and examine financial records. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants and auditors assess financial operations and work to help ensure that organizations run efficiently.

Accountant Duties:

  • Examine financial statements to ensure that they are accurate and comply with laws and regulations
  • Ensure that taxes are paid properly and on time
  • Inspect account books and accounting systems for efficiency and use of accepted accounting procedures
  • Organize and maintain financial records
  • Assess financial operations and make best-practices recommendations to management
  • Suggest ways to reduce costs, enhance revenues, and improve profits

In addition to being responsible for the preparation and analysis of a company’s financial records, including data management, creation of financial statements and ensuring regulatory compliance in the company’s accounting practices, accountants must explain their findings. This includes preparing written reports, meeting with organization managers and individual clients, and deliver expert recommendations and solutions.

Accountants provide a wide variety of services including administrative tasks that are distracting business owner’s and inhibiting growth. They also provide strategic advice and come up with clever ways to reduce expenses and increase revenue. Hiring an accountant allows owners to run their business with more clarity and confidence

The Consultance Accounting Difference

The professional accountants at Consultance Accounting go above and beyond so businesses in every industry, including non-profits, succeed at every level. From start up and business structuring to expansion and growth, Consultance guides clients every step of the way. The team is made up of highly experienced professionals, with expertise that includes accounting and bookkeeping, compliance and ethics, financial analysis, process and systems re-engineering, risk management, and accounting system optimization.

Consultance Accounting provides a broad offering of accounting services and tools to improve efficiencies and decision-making in a customizable format to meet each client’s specific needs. We are experts in our fields and are fully certified in the technology platforms we offer our clients. What makes Consultance different is how we deliver our services. Through our people, processes, and technologies, we have proven our unyielding commitment to exceptional client service and knowledge from industry experts.

what do accountants do

What Does an Outsourced CFO Do?

Outsourced CFO

Owners of small or medium-sized businesses frequently encounter challenges when operating their companies efficiently and economically. Concerns about a company’s well-being often leads owners to oversee and take on too many tasks. Which in turn takes their focus away from other important aspects of the business.  Outsourcing CFO services gives business owners expert assistance and the ability to refocus on pursuing and executing the strategic vision of the company. However, many questions arise when considering hiring an outsourced CFO. What exactly does it mean to outsource CFO services? What does an outsourced CFO do? Is this right for my type of business?

Professional CFO Services

A traditional CFO (Chief Financial Officer) is responsible for managing the financial activities, risks, and planning for an entire organization. This includes analyzing the company’s financial strengths and weaknesses, following cashflow, ensuring financial reports are accurate, and suggesting plans for improvement or correction. Today, countless companies are realizing they need an experienced CFO but employing one full-time is not financially realistic.

Enlisting the help of a professional outsourced CFO can make it easier for companies to achieve their goals and resolve accounting and financial issues for a wide range of businesses.

The Wall Street Journal explains, “Outsourced CFOs have a bigger role than accountants, who mainly keep track of the company’s books. They work with business owners to manage their finance departments, connect them with business sources that can help them grow and provide financial data to help make strategic long-term or day-to-day decisions.”

Benefits of Outsourced CFO Services

  • Allows for Internal Growth
  • Alleviates Financial Constraints
  • Improves Cash Management
  • Increase Business Revenue
  • Boost Time Management
  • Creates a Plan and Implements a Financial Strategy
  • Use Cost-Saving Technologies
  • Gives Unbiased Advice
  • Financial Expertise at a Lower Costs

Consultance CFO Services

There is a reason “consult” is part of our firm’s name. Our goal is not only to provide reliable expert CFO services, but also to be your trusted business advisor.

Our CFO Services can help you with: Cash Flow Management, Business Plan Development, Performance Dashboard Analysis and Reports, Budgeting and Forecasting, Pricing Models and Profitability Analysis, Cost and Risk Management.

Consultance Accounting’s CFO services utilizes our knowledgeable professionals who will look at your business from all angles. We inspect aspects that impact your bottom line, offer practical insights and advice, and remove the burden from you at a fraction of the cost. You will have peace of mind knowing that our engaged and qualified CFOs will help you make informed business decisions based on an in-depth understanding of your financial activities and condition so that you can achieve your business goals.

What does an outsourced CFO do?

Tax Deadline and Other Tax Season Changes

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Tax Deadline and Other Tax Season Changes

tax dealine

Many tax changes, including the tax day deadline, are occurring in light of the COVID-19 pandemic. These changes are affecting individuals, small business, and tax-exempt entities alike. This article provides a general overview of the federal tax relief measures and changes recently implemented.

 

Tax Deadline Day

The Treasury Department and Internal Revenue Service announced that the federal income tax deadline for filing has been extended from April 15, 2020, to July 15, 2020. Federal income tax payments are also deferred to July 15, 2020, without interest or penalties, regardless of the amount owed. The postponement applies to all taxpayers, including individuals, estates, trusts, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

 

Tax Credits and Relief

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage eligible employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit.

The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021.

The Families First Coronavirus Response Act (FFCRA) contains two separate provisions: The Emergency Paid Sick Leave Act (EPSLA) and The Emergency Family and Medical Leave Expansion Act (Expanded FMLA). It provides small and midsize businesses a refundable tax credits that reimburses them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.

Small-Employer FICA Tax Relief relates to sick leave and family medical leave payments authorized by the Act are exempt from the 6.2% Social Security tax component of the employer’s federal payroll tax that normally applies to wages. Employers must pay the 1.45% Medicare tax component of the federal payroll tax, but they can claim a credit for that amount.

 

Other Tax Updates

The Standard Deduction amounts will be increased slightly this year compared to previous years.

Single & Married Filing Separate $12,200

Head of Household $18,350

Married Filing Joint $24,400

 

The Insurance Penalty for not having health insurance no longer applies for 2019 federal tax returns. However, some states have their own individual health insurance mandate.

The Alimony Deduction was eliminated for divorce rulings signed after December 31, 2018 that require alimony payments. The payer will not be allowed a deduction for payments made, nor will the payee be required to claim the alimony as income on their respective tax returns.

 

Do your financial statements and accounting records give you what you need to optimize tax savings? Have you considered working with a reputable and experienced accounting firm?

If you need help with bookkeeping services or accounting services, or have questions understanding the new tax changes, please reach out to Consultance Accounting and we will be happy to assist.

 

Disclaimer: Consultance Accounting does not provide tax or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax or legal advice.

What Does a Bookkeeper Do?

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What Does a Bookkeeper Do?

Bookkeeping is a large component of the finance and accounting department of a business. What Does a Bookkeeper Do? Primarily, bookkeepers are responsible for managing and recording the day-to-day financial transactions of the business; ensuring accounts and records are accurate and complete. Financial transactions include operational expenses, sales, earned revenue, payroll, payment of taxes, earned interest, loans and investments.

A bookkeeper’s role may vary depending on the size and nature of the company. Smaller companies that do not employ an accountant, require more extensive duties from a bookkeeper. At minimum, the bookkeeper is responsible for processing the paperwork for a company’s transactions. This entails getting the information quickly and accurately recorded in the company’s general ledger accounts. Also, bookkeepers provide full back-office support. For instance, processing invoices, paying bills, managing cash, billing and following up on accounts receivable, reconciling account balances, adjusting entries, and processing payroll.

Bookkeepers record the company’s activities in financial statements which display the financial performance of the company. The statements focus on specific parts of a company’s financial activities, such as cash flow, assets or earned revenue and connected expenses. Some small business bookkeepers use paper ledgers and journals to record financial transactions. However, most businesses prefer their bookkeeping be a cloud-based program or system. Bookkeeping and accounting software simplify record keeping while being more cost efficient and making it possible for small businesses with little staff or resources to build and maintain comprehensive bookkeeping systems.

Consultance Accounting leverages exceptional talent, proven processes, and top technology platforms to deliver timely and accurate financial solutions that help small and medium-sized organizations improve productivity, increase profitability, and achieve their goals.

 

What Does a Bookkeeper Do?

What are the 5 basic principles of accounting?

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It’s essential for any business to have basic accounting principles in mind to ensure the most accurate financial position. Your clients and stakeholders maintain trust within your company so recording reliable and certified information is key. What are the 5 basic principles of accounting? To better understand the principles, let’s take a look at what they are.

1. Revenue Recognition Principle

When you are recording information about your business, you need to consider the revenue recognition principle. This is the period of time where revenues are recognized through the income statement of your company. In order for your revenues to be recognized in the period that the services were provided if you are on the accrual basis, If you are on the cash basis then, the revenues need to be recognized in the period the cash was received.

2. Cost Principle

Recording your assets when you purchase a product or service helps keep your business’s expenses orderly. It’s important to record the acquisition price of anything you spend money on and properly record depreciation for those assets.

3. Matching Principle

Expenses should be matched to the revenues recognized in the same accounting period and be recorded in the period the expense was incurred. If there is a period of time where revenue was recognized on sold products or services, then the cost of those things should also be recognized..

4. Full Disclosure Principle

The information on financial statements should be complete so that nothing is misleading. With this intention, important partners or clients will be aware of relevant information concerning your company.

5. Objectivity Principle

The accounting data should consistently stay accurate and be free of personal opinions. Make sure the data is also supported by evidence that can include vouchers, receipts, and invoices. Having an objective viewpoint, in this case, helps rely on financial results. For example, your viewpoint may not be objective if you once worked for the same company that you are now an auditor for because your relationship with this client might skew your work.

Now that you’ve got all of these down, moving forward with the financial positioning of your business will be effortless.

Contact us at 877-232-6788 if you have any questions or concerns about implementing these basic accounting principles to your business.

Love Running Your Organization, But Hate Paperwork? 3 Reasons to Outsource Bill Payment

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If I asked the leaders of nonprofit organizations and associations, as well as business owners, how much time they spent on their true business at hand, or the things that matter most, I’d venture to say that most of them would say “not enough.”

When I bring new clients on board, I find that many of them spend a lot of time shifting through mounds of paper, trying to stay on top of vendor bills and payments and other administrative activities. By outsourcing their back office functions to Consultance Accounting and switching to Bill.com, an automated bill payment process solution, organizations can focus on what matters most, and let us handle their bookkeeping and accounting needs.

As a cloud-based firm that provides outsourced accounting services to clients across the country, Consultance Accounting leverages the use of top technology platforms, such as Bill.com, to streamline our clients’ operations. Bill.com is a bill payment process solution that integrates with QuickBooks Online and other accounting systems. Bill.com outlines Ten Reasons to Outsource (and Upgrade) Your Bill Payment. Here’s my take on some of the key points they discuss:

Bill Payment Process
Credit: Quinn Dombrowski CC BY-SA 2.0 via flickr

Get Rid of Paper Hassles: Have you heard of that tip about handling a piece of paper only once to increase your efficiency? With an automated bill pay solution, you can take that tip to the next level by eliminating those pieces of paper entirely! Here’s how it works for our clients’ Accounts Payable processes: We work with clients and their vendors to eliminate all paper bills, so instead, they are electronically remitted directly to a dedicated Bill.com email account. From there, our accounting specialists ensure the proper account coding and payment dates, and the Bill.com system will automatically forward the on-line bills to the appropriate people for approval. All the supporting documents are stored securely on-line, leaving you with a paper-less work environment.

 

 

Bill Payment ProcessEnhance Your Mobility: Do you ever feel like your handcuffed to your desk due to all the administrative work you have to handle? By outsourcing your accounting function and using Bill.com, you can free yourself from your physical office space and conduct business anywhere using your mobile device(s). This occurs for multiple reasons. First, you eliminate the need for an in-house bookkeeper to handle your accounting transactions, which saves you the time in the office managing that employee. Second, your vendor and payment data is easily accessible on your mobile device(s). As a business owner who is always on the move, I can personally attest to how easy it is to access my vendor invoices using my smart phone. For example, if a vendor calls me up and asks about a payment, I can easily pull up the Bill.com app on my smart phone, review the vendor’s information, and approve a payment on the spot. It’s that simple.

 

Bill Payment Process
Credit: 401calculator.org via flickr

Experience Financial Savings: In addition to helping you reprioritize your precious time, it’s important to note the opportunity to save money too. By outsourcing your back-office functions to an accounting services firm, you can reduce your employee-related overhead costs (e.g., training, office space, benefits, etc.). By using a bill payment solution like Bill.com, you can save by transitioning your paper checks to electronic payments. Bill.com estimates that the total yearly cost for paper checks can be $24,540, as compared to total yearly cost for electronic payments of $1,680.  Click here for more info.

 

 

 

If you’re like most business owners and leaders of nonprofit organizations, you take great pride in the services or products you provide. You want to focus your time and energy on business strategy and goals. Outsourcing your back-office functions to a dedicated, highly-skilled accounting services firm that uses proven technology apps to streamline your workflows allows you to do exactly that.

So, are you ready to concentrate like Arnold Palmer? Whether it’s serving your customers, fundraising for future growth, or expanding your reach in the community, Consultance Accounting in partnership with Bill.com can help you save valuable time, reduce operating costs and gain peace of mind that you’re focused on what matters most.  Contact Us if you’d like to learn more.

Consultance leverages exceptional talent, proven processes, and top technology platforms to deliver timely & accurate financial solutions that help small and medium-sized organizations improve productivity, increase profitability, and achieve their goals.

Consultance Accounting Services

 

Expense Management: 6 Ways to $ave in 2020

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Image by Shutterbug75 from Pixabay

Expense Management

The challenges of running a business or nonprofit and staying on top of the financial bottom line can be challenging. Growing your top line revenues is critical to your success in 2020. However, keeping your expenses in check is just as important and can help sustain your business while you build your revenues.

Having an expense management process, where you review and analyze the details of your spending activity, will help keep your costs down and in line with your industry standards. Here are six expenses that will yield the biggest bang for your buck and are worth investing time reviewing to reduce your costs:

  1. Payroll – Payroll is often the largest expense for most businesses and it’s easy to ignore. If you are over-staffed, then you are reducing your chances of sustaining your business. Look at each staff position and assess employee productivity.  Determine how much headcount your business can actually sustain based on industry averages. If your payroll is too high, you should consider alternative staffing scenarios to better fit your current ability.
  2. Inventory/Cost of Goods Sold – For many businesses, cost of goods sold is typically a large expense. Make sure you have an inventory tracking system in place. Review your costs of goods sold each month as a percentage of sales. If you’re not where you need it to be, it’s time to take a deeper dive and figure out why your business is not producing the desired results.
  3. Credit Card Fees – When was the last time you looked at your merchant fees? Better yet, how about converting credit card payments into ePayments, where the fees are a fraction of the cost? Give your customers and clients better options to pay that don’t have high merchant fees.
  4. Advertising/Marketing – When was the last time you calculated your Return on Investment (ROI) for your various Advertising and Marketing expenses? Many businesses have recurring charges that are returning very little to the financial bottom line. It may be time to get rid of these charges and tighten up your budget.
  5. Equipment Rental/Leases – New equipment to service customers and clients can generate new revenue streams, but having the wrong lease on your equipment rentals can cost you in higher interest.  These costs can add up over a 3-5 year term. When pursuing a new lease, shop around for the best financing and don’t just go with what is offered because it is convenient. Also, make sure you have a capital budget plan in place each year to account for new equipment and the cost that comes along with it.
  6. Professional Fees – How many third party consultants and other professional service providers are you paying? Are the services they are performing helping you achieve your strategic goals? Calculate the ROI and value each one is providing. If they are not helping you achieve your desired results, you need to re-evaluate the expenditure.

In sum, by putting a process in place to review your largest expenses on a regular basis, you can achieve the cost reductions that you desire.

Contact Us if you’d like to learn more about how Consultance can help you with cost management through our CFO Services.

Consultance leverages exceptional talent, proven processes, and top technology platforms to deliver timely & accurate financial solutions that help small and medium-sized organizations improve productivity, increase profitability, and achieve their goals.

If you have any questions, feel free to contact us here.

Consultance Accounting Services

Improve Cash Flow : A Prescription for Better Cash-Flow Management (Part 2)

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Improve Cash Flow

A Prescription for Better Cash-Flow Management (Part 2)

Note: This article is the second in a two-part series on achieving better/ improving cash flow for your business or nonprofit organization/association. See the first article here, which defines Cash Flow and why it’s important to understand, as well as how to do Cash Flow Projections.

improve cash flow

How to Improve Cash Flow?
To manage your business or nonprofit organization’s cash flow better, look for opportunities to improve the timing of money going in and out of your operations. Let’s dive deeper into potential action steps to consider:

Faster Cash Inflows
Consider the following ideas to achieve better cash inflows:
• Faster payments from customers, clients and members – assess reasons for delays in payments, reimbursements and other balances due, and identify ways to achieve more efficient receipts, such as e-payments. Incentivize those who owe you to make prompt payments by charging penalties for late payments.
• Diversify your revenue streams so that you aren’t relying on just one source of income.
• Make sure your billings process is effective and efficient to avoid delays in invoicing and following up with late payers.
• Assess your payment terms for refinement opportunities.

Slower Cash Outflows
Slow down your cash outflows by considering the following:
• Delay big purchases when your anticipated cash inflows are low. Before deciding on big investments, take the time to assess whether the expense will add significant value to the practice.
• Consider obtaining a line of credit or short-term loan to spread the cost of big-ticket items over a period of time. Make sure you do your research to identify the best loan rates and terms. (For more info on Business Lines of Credit, see this Nav article at https://bit.ly/2K4M05j.)
• Determine whether it’s better to lease vs. buy assets.
• If you already have some short- and/or long-term loans, look for opportunities to consolidate your debt at a more attractive interest rate.
• Analyze your inventory turnover rates and avoid carrying too much inventory on the books.
• Identify your fixed costs and prioritize them.

• Look for ways to cut discretionary expenses.

As noted in last month’s article, it’s a good idea to first understand your current cash flows and project your future monthly cash flows, since that will give you some good insights as to where the opportunities may lie within your business/organization.

Understanding your cash flows and taking action to improve them will enable you to sustain unexpected challenges and help you to build a successful business/organization.

Need Help?
If you have questions and/or would like to understand more about Improving Your Cash Flow, please reach out to me, I’ll be happy to talk with you. Orin Schepps, Founder and CEO @consultanceaccounting https://www.consultancellc.com

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