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

🔹️🔹️TOP TIPS🔹️🔹️ Day Four - Monitor Cash Flow For those that work with me, recognise my mantra as ‘know your numbers to grow your numbers’. To delve a little deeper into this, we’re going to do 10 days of top tips. ▫️ You should monitor your cash flow regularly to ensure you have enough money to cover expenses and invest in growth opportunities. Cash flow management is essential for the financial health of your business. ▫️ You may have heard the term, “cash is king”, this runs very true when it comes to business. ▫️ You can be profitable all day long, but if you don’t have the cash in the bank, you don’t have a business or you won’t for much longer. ▫️ It is the biggest area to monitor when it comes to business. You need to ensure you have enough cash in the business to cover upcoming costs to your employees, suppliers, HMRC, etc. ▫️Managing your cashflow is much easier when you are running your business through software, especially when you’re utilising the app and can receive prompts to remind you when things that need to be done, for example, if an invoice is not paid. 🔹️If you’re not sure of the best way to get this in place, get in touch and we can discuss how we can support you to do this.🔹️ #knowyournumbers #growyournumbers #monitoryourcashflow Kasion Accounting Solutions #managingyourbusiness #toptipsdayfour #toptips

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

The Ultimate Guide to Understanding Cash Flow Statement Format in PDF - https://lnkd.in/eF_vzHP3 Follow #lamaraccountants

Discover the essentials of payment reconciliation with our comprehensive guide! Learn how to optimise your workflow, detect discrepancies early, and maintain financial integrity. Dive into best practices and stay ahead in managing your finances efficiently. #paymentreconciliation #reconciliation

Still using outdated financial processes? You’re risking your business’s future. A mid-sized company was having problems with their finance tasks. These tasks took too long, decisions were slow, and customers were not happy. The CEO knew they needed to change and decided to start using digital tools to fix their money tasks. First, the CEO looked at how they were doing things. Next, they chose new tools. Data became very important. The CEO got tools that showed them their money data clearly. The team learned how to use these tools to make better decisions quickly. They always looked for ways to get better. They had regular meetings to talk about what was working and what wasn't. They checked their progress and made changes when needed. The results were great: They worked faster, made quicker decisions, and customers were happier. The lesson? Using digital tools for money tasks is a must. Ready to start your journey? Learn the five key steps to using digital tools for your finance tasks. Click to read more and make your finance process tasks better.

Dear Accountants and business owners, for business prudence, it is very necessary to check the financial health of your company on monthly basis, it is not advisable to wait till the end of the year. A stitch in time saves nine. Checking and reporting will allow you to track the financial health of the company more closely, identify any potential issues early, and make informed decisions promptly. Monthly reports provide a clearer picture of the company's performance, helping in budgeting, forecasting, and strategic planning. Waiting until the end of the year might lead to delayed insights and make it challenging to address emerging financial issues promptly. How can your stitch in time saves nine? First, you need to gather relevant financial information which includes income, expenses, assets, liabilities, and equity. (To be more efficient, i will advise to use an Accounting software that are reliable). Develop a monthly review on your income statement and cash flow. you will be able to see how expenses is taking away for revenue and the rate at which revenue is flowing in. There, you will see where to adjust and how to adjust. Check to see if you've made a profit or loss for that month, that will gear you to do better the following month through planning before the year runs out. Always add further details and explanations on every financial details immediately spotted. This will help to give clarity on information. Without full information, you won't be able to comprehend what that financial information seems to be. On monthly basis, provide a narrative explaining the company's financial performance, significant changes, and future expectations. Also, provide recommendations and check if the recommendation was implemented the following month. Organize the report in a clear and understandable format, adhering to any regulatory or industry standards. Compliance is a key factor in Accounting and Finance practices. Lastly, share the financial report with relevant stakeholders, such as investors, creditors, and regulatory bodies. financial information that is not communicated stand to be unreliable. This is how to check and report financial information of a business. #accounting #accountingtips #financialaccounting #financialreporting