Outmin’s Post

Late payments can wreak havoc on a small business’s cashflow, causing unnecessary stress and financial strain. If you are struggling with overdue invoices, fear not! We share six straightforward tips to expedite payment processing and get your cash flowing smoothly in this article. https://bit.ly/3VeP82V #Cashflow #Strategy #BusinessPlanning

Most business owners believe they have control over their cash flow. But in reality, many rely solely on their bank balance, missing out on a crucial part of the financial picture. 𝗧𝗵𝗲 𝗠𝗶𝘀𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝗖𝗼𝗺𝗳𝗼𝗿𝘁 𝗼𝗳 𝗬𝗼𝘂𝗿 𝗕𝗮𝗻𝗸 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 Imagine you’ve just received a client prepayment, and your bank balance looks healthy. But, that money isn’t truly available. It’s a liability because it’s owed back to the client in the form of a service or inventory you haven’t delivered yet. So, how can you avoid this common pitfall and take full control of your cash flow? Here are 5 essential steps: 𝟭. 𝗦𝘁𝗼𝗽 𝗥𝗲𝗹𝘆𝗶𝗻𝗴 𝗦𝗼𝗹𝗲𝗹𝘆 𝗼𝗻 𝗬𝗼𝘂𝗿 𝗕𝗮𝗻𝗸 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 Instead, develop a system that provides a complete view of your cash flow, including outstanding liabilities and future obligations. 𝟮. 𝗔𝗱𝗼𝗽𝘁 𝗮 𝗖𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗦𝘆𝘀𝘁𝗲𝗺 To truly manage your cash flow, use an accounting tool like QuickBooks Online or Xero. These platforms not only track your cash but also forecast future payments. 𝟯. 𝗥𝗲𝗰𝗼𝗿𝗱 𝗖𝗹𝗶𝗲𝗻𝘁 𝗣𝗿𝗲𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗮𝘀 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 When you receive a client prepayment, it’s not free cash - it’s a future obligation. Record it accurately as a liability, ensuring you don’t mistakenly believe it’s available to spend until you’ve delivered the service or product. 𝟰. 𝗦𝗲𝗽𝗮𝗿𝗮𝘁𝗲 𝗔𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝗖𝗮𝘀𝗵 𝗳𝗿𝗼𝗺 𝗖𝗼𝗺𝗺𝗶𝘁𝘁𝗲𝗱 𝗙𝘂𝗻𝗱𝘀 Just because you have cash doesn’t mean you can spend it. Identify and separate funds already committed to expenses like taxes, payroll, loans, or supplier payments. This will help you avoid overspending and running into cash shortages when payments are due. 𝟱. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗬𝗼𝘂𝗿 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗥𝗲𝗴𝘂𝗹𝗮𝗿𝗹𝘆 𝗮𝗻𝗱 𝗔𝗱𝗷𝘂𝘀𝘁 Set up regular cash flow reviews, either weekly or monthly. During these reviews, assess where your money is going, make necessary adjustments, and plan for future expenses. This will help you make informed financial decisions. By using the right tools and systems, you can make sure every mooney in your business works for you, rather than against you. #FinancialManagement #CashFlow #BusinessSuccess #SmartDecisions #SmallBusinessFinance #BusinessGrowth

When I started writing about hashtag #cashflow in 2018, nobody talked about it. Now, a lot of people are paying lip service to it. We need to go way beyond projections and start managing and maximizing cash flow by implementing proven strategies. Some thoughts and observations: "𝗖𝗮𝘀𝗵 𝗶𝘀 𝗞𝗶𝗻𝗴" 𝗶𝘀 𝗮 𝗺𝘆𝘁𝗵. Most people treat it like a second-class citizen. Here's some of the proof: • 𝗕𝗮𝗻𝗸𝘀 𝗮𝘀𝗸 𝗳𝗼𝗿 "𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄" 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝗮𝗿𝗲 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗣&𝗟 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝗶𝗼𝗻𝘀, 𝘄𝗵𝗶𝗰𝗵 𝗮𝗿𝗲 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗲𝗹𝘆 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁. 𝗡𝗢𝗧𝗘: Ask me about the time a loan defaulted just months after it was given when the bank rejected my cash flow projection. They insisted on an accrual-basis P&L projection, which, while accurate, painted an inaccurate picture of the company finances after the loan was given. • Jeremy Burke talked to thousands of accountants while he worked for Dryrun. The #1 reason an accounting firm should put "cash flow management" on its website is "because everyone else is doing it." • A software company proudly asked me to look at their cash flow projection reports. They had fundamental flaws. 𝗙𝗹𝗮𝘄 𝟭: They only showed P&L accounts. For example, they showed interest expenses but not the principal payment. 𝗙𝗹𝗮𝘄 𝟮: They used accrual accounting, not cash accounting. 𝗙𝗹𝗮𝘄 𝟯: They used averages but did not include seasonality • The #GAAP standard report is the Statement of Cash Flows. It's backward-looking and the most difficult report for a small business owner to use. I'm rambling today because I feel so good about the systems I've completed to provide a complete cash flow advisory program. I'll be putting out more information about it, so stay tuned. What is your biggest concern, go-to activity, report, or challenge with small business cash flow? I'd love to hear 𝘆𝗼𝘂𝗿 ramblings in the comments! Cash is Clear™ #accounting #bookkeeping

📚 𝗕𝗮𝘀𝗶𝗰 𝗖𝗼𝗻𝗰𝗲𝗽𝘁𝘀 𝗼𝗳 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀⚠️ Accounting involves systematically recording, classifying, and summarizing financial transactions to track the financial health and performance of a business. Here’s an overview: 1️⃣ Types of Accounts 🔹 Assets: Resources owned by the business (e.g., cash, inventory, equipment). 🔹 Liabilities: Obligations or debts owed by the business (e.g., loans, accounts payable). 🔹 Equity: Owner’s claim on the assets after liabilities are deducted (e.g., capital, retained earnings). 🔹 Revenue: Income generated from business activities (e.g., sales, service income). 🔹 Expenses: Costs incurred to generate revenue (e.g., rent, salaries, utilities). 2️⃣ Double-Entry System • Every transaction affects two accounts: • One account is debited. • Another is credited. • This system ensures the Accounting Equation stays balanced: Assets = Liabilities + Equity 3️⃣ Debit & Credit Rules • Debits (Dr): ✔️ Increase Assets and Expenses. ❌ Decrease Liabilities, Equity, and Revenue. • Credits (Cr): ✔️ Increase Liabilities, Equity, and Revenue. ❌ Decrease Assets and Expenses. 4️⃣ Ledger and Journal 🗂️ Journal: Records individual transactions in chronological order. 📒 Ledger: Summarizes transactions by account, showing debits and credits for each. 5️⃣ Financial Statements Accounts provide the foundation for preparing financial statements: 📊 Income Statement: Shows profit or loss (Revenue - Expenses). 📜 Balance Sheet: Displays financial position (Assets = Liabilities + Equity). 💧 Cash Flow Statement: Tracks cash inflows and outflows. 💡 Why It Matters Accounts are the building blocks of financial reporting, enabling businesses to make informed decisions, comply with regulations, and communicate performance to stakeholders. #muhammadejazofficial #letsconnect #AccountingBasics #FinancialEducation #DoubleEntrySystem #AccountingConcepts #BusinessFinance #FinancialStatements

💸 Accrual vs. Cash Accounting: The Tale of "Rich on Paper, Broke in the Bank" Ever look at your financial statements and think, "Wow, I'm doing great!"—only to check your bank account and feel a completely different vibe? 🫣 Let’s talk about why that happens. In accrual accounting, you record income when it's earned (not when you get paid 💵) and expenses when they’re incurred (not when you actually pay them). It’s great for showing the big picture of your business, but it can make you feel “rich on paper” while your cash flow is gasping for air. Cash accounting, on the other hand, is all about real-time reality. You recognize income only when the money hits your account and expenses when the cash leaves it. It’s simpler, but it might not show you the whole story. Here’s where things can get tricky: ✅ You land a big sale (yay!) but haven’t been paid yet. ✅ You owe vendors today, but your customers pay next month. ✅ On paper, you’re thriving, but in your bank account, you’re hustling. 💡 It’s not you; it’s the accounting method! At Anaka Consulting Group, we get it. We know how frustrating it can be to feel like your financial story doesn’t match your reality. That’s why we’re here to hold your hand, explain these concepts in plain English, and help you bridge the gap between looking good on paper and actually feeling good about your cash flow. 💪 ✨ The future of your business is bright, but it’s up to us to make it right. Let’s shine together! #CashFlowMatters #AccrualVsCash #BusinessRealityCheck #SmallBizSupport #AnakaConsulting #EBITDApreservation #EnhancedMultiple

This overview will help you establish the financial tracking and reporting needed to develop cash flow statements to ensure you have a handle on what’s coming in and going out #accountingprinciples #cashflowmanagement #businessdevelopment #tipsandadvice

When I started writing about #cashflow in 2018, nobody talked about it. Now, a lot of people are paying lip service to it. We need to go way beyond projections and start managing and maximizing cash flow by implementing proven strategies. Some thoughts and observations: "𝗖𝗮𝘀𝗵 𝗶𝘀 𝗞𝗶𝗻𝗴" 𝗶𝘀 𝗮 𝗺𝘆𝘁𝗵. Most people treat it like a second-class citizen. Here's some of the proof: • 𝗕𝗮𝗻𝗸𝘀 𝗮𝘀𝗸 𝗳𝗼𝗿 "𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄" 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝗮𝗿𝗲 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗣&𝗟 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝗶𝗼𝗻𝘀, 𝘄𝗵𝗶𝗰𝗵 𝗮𝗿𝗲 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗲𝗹𝘆 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁.      𝗡𝗢𝗧𝗘: Ask me about the time a loan defaulted just months after it was given when the bank rejected my cash flow projection. They insisted on an accrual-basis P&L projection, which, while accurate, painted an inaccurate picture of the company finances after the loan was given. • Jeremy Burke talked to thousands of accountants while he worked for Dryrun. The #1 reason an accounting firm should put "cash flow management" on its website is "because everyone else is doing it."    • A software company proudly asked me to look at their cash flow projection reports. They had fundamental flaws.      𝗙𝗹𝗮𝘄 𝟭: They only showed P&L accounts. For example, they showed interest expenses but not the principal payment.     𝗙𝗹𝗮𝘄 𝟮: They used accrual accounting, not cash accounting.     𝗙𝗹𝗮𝘄 𝟯: They used averages but did not include seasonality • The #GAAP standard report is the Statement of Cash Flows. It's backward-looking and the most difficult report for a small business owner to use. I'm rambling today because I feel so good about the systems I've completed to provide a complete cash flow advisory program. I'll be putting out more information about it, so stay tuned.  What is your biggest concern, go-to activity, report, or challenge with small business cash flow? I'd love to hear 𝘆𝗼𝘂𝗿 ramblings in the comments! Cash is Clear™ #accounting #bookkeeping

Late payments can cripple your cashflow and undermine the viability of your business. We’ve outlined some critical ways to tackle late payment and get your cash back on track #latepayment #cashflow #businesstips #ImprovePaymentTimes #CashflowBoost #BusinessGrowth #SMEFinance #BrisbaneBusiness #BrisbaneStartups #BrisbaneSME #BrisbaneFinance #BrisbaneEntrepreneurs https://lnkd.in/g56kvd7n

Looking to optimize cash flow and strengthen your business's financial health? Accounts receivable management is crucial to maintaining liquidity and supporting growth. Check out our article to learn strategies for efficient receivables management that can improve your company’s financial resilience. Read more here. https://bit.ly/48HxJ9l

[Joint Accounts vs. Separate Accounts: What Works for Nigerian Couples?] Effective financial management through couples joint separate accounts plays a crucial role in the . . . https://lnkd.in/dej725Qf