1 – Doing Work Without Documentation

One common financial mistake construction companies make is doing additional or changed work without documentation.

The construction industry is very hands-on, meaning a lot of decisions and changes are made on the field based on a quick conversation and a handshake. All too often, that additional work doesn’t get documented through a formal change order before the work is done.

If the change does make it to the office for documentation and invoicing, it’s common for the pricing to have already been negotiated on-site and invoiced without formally crunching numbers. This often results in little to no profit for the extra work. The result of these undocumented changes is an added cost to the contractor that may or may not be billed in the end.

Why it’s an issue: Undocumented changes or changes that have invoiced at a loss can mean reduced profit margins or even a loss on a project.

How to fix it: Construction companies can fix this financial issue with a better set of processes to facilitate mid-project changes. It starts before the project begins with a detailed scope of work and is supported by a detailed change-order process. This process should be designed to allow time for the contractor to put together pricing—instead of shooting from the hip—as well as document project changes and send them to the finance team for invoicing. This document should be signed by both the contractor and customer before the additional work is started.

2 – Invoicing Late & Missing Bank Draws

Many projects have invoice submission deadlines for a monthly draw from the bank. If you miss the deadline, then it may not be until the next month before the invoice can be submitted to the bank and paid.

Why it’s an issue: Just because your invoice hasn’t been paid on time doesn’t mean your workers and vendors are going to wait for their money. If late invoicing has become common practice in your company, you’re likely having to front or float costs until the invoice is paid. This not only increases your financial risk but also means you have less cash on hand to put back into the company.

How to fix it: Late invoicing is often the result of lax reporting systems, a lack of communication from the field, or an overworked financial department. Consider consulting with an outsourced CFO to determine where systems can be improved for more timely invoicing and optimized cash flow. Many financial issues related to cash flow in construction companies can be resolved by restructuring a few key financial processes. However, if your processes are optimal and you believe the issue lies in overworked financial staff, you may consider hiring a part-time bookkeeper or financial controller to help balance the workload.

3 – Misunderstanding Costs

One of the most common financial mistakes in the construction industry is not having a clear understanding of costs. A construction company should have comprehensive knowledge of down-to-the-detail costs. This includes not only materials and labor but equipment and administrative costs as well. Without this understanding, projects may be incorrectly priced, leading to jobs that are ultimately destined to be money losers.

Why it’s an issue: Without in-depth knowledge and processes surrounding costs, you can’t have an educated view of your profit structure. You’re likely bidding some jobs too low, losing out on some projects you’ve bid too high, and may have undiscovered adjustments that, if made, could maximize profits across the board.

How to fix it: The best place to start is to look at your income statement. Are expenses being properly allocated to the associated jobs? Are there any costs that aren’t accounted for? Do you have a method for factoring in expenses such as equipment depreciation, administrative expenses, or property rentals? If you’re not sure where to start, consider consulting with a CFO advisor.

4 – Misallocating Costs

Hand-in-hand with the mistake of misunderstanding costs is the misallocation of costs. Each project’s costs should be meticulously accounted for to achieve a more reliable analysis of profitably. Without this information, a construction company may not know whether a job is truly profitable or not.

Common issue construction companies may find is that they have some jobs that are extremely profitable, and others are not. While for many construction companies these projects balance out to be “overall profitable,” without a deeper look, construction companies may be leaving money on the table and missing out on a higher level of profitability.

Why it’s an issue: Making the best financial moves for your construction company means having detailed financial data to make more informed and strategic business decisions. This starts with an accurate allocation of costs. Better understanding costs can lead to more optimized profits on all projects, ultimately leading to a more profitable company.

 How to fix it: If you have a talented financial staff, then some analysis and a more detailed refinement of financial processes can usually do the trick. However, if your financial department is staffed only with bookkeepers and/or accountants, you may want to consider bringing in an outsourced CFO on a fractional basis to help with some optimization. Not only can a CFO help implement a better system for predicting and allocating costs, but they can also refine your vendor agreements and service contracts and make strategic adjustments to maximize profits and accelerate sustainable growth.

5 – Fixed Material Cost in Bid Contracts

Some contractors have built into their contracts the ability to adjust material prices due to market fluctuations…and some don’t. For example, when steel prices jumped a few summers ago, some companies saw an increase in material costs almost overnight and many had to eat the cost since they couldn’t contractually pass the cost on to the customer.

Why it’s an issue: Market changes, especially in the current manufacturing environment, fluctuate quickly. This can mean taking an unexpected loss if you don’t have language in place to protect yourself from unexpected changes.

How to fix it: Implement language in your service contracts to allow for adjustments based on market price. Some construction companies, to avoid ambiguity and distrust with their customers, will set standard language where if the market price for materials changes by a certain percentage then the extra cost will be invoiced to the customer.

6 – Insufficient Cash Reserves

Construction companies generally have to front all of their labor and material expenses, sometimes by as much as 90 days or more. Depending on where they are in the construction cycle and how big the job is, they may not see some cash come in for up to a year. If a construction company doesn’t have the cash reserves to handle this, they may end up having to take out unnecessary loans or delay important payments such as payroll. This can accrue interest costs or cause distrust with vendors or employees.

Why it’s an issue: The construction industry is already laden with plenty of financial risks. It’s important to minimize the amount of time between the time you pay your employees and vendors and the time you receive payment from the client. This will help to minimize your financial risk and keep more cash on hand for seasonal fluctuations, unforeseen circumstances, and for preserving working capital to grow your business.

How to fix it: One change contractors can make is by requiring a 25-50% deposit on a project. This can help reduce the amount of labor and material costs being fronted by the company. You can also consider renegotiating vendor contracts to extend billing cycles or to pay some or all of the costs after the project is complete. This works best when you have a good, trusting relationship with your vendors. If you don’t yet have this type of relationship with your vendors, start cultivating one now.

7 – Front-Loading Costs

A final critical issue construction companies often face is front-loading costs. This is the tendency to use money received from one client project to pay for the costs of a second construction project. This often occurs because of a problem project, such as one that is improperly bid or that runs into delays or labor overages. The construction company will scramble and “rob from Peter to pay Paul.” This can often turn into a cyclical problem, causing issues further and further down the line and creating significant risk.

Why it’s an issue: Taking from a second project’s funds to pay for the first project can put the company at risk of not being able to finish the second project, ultimately putting both projects at risk. It can also damage relationships with the other customer since this misallocation of their project funds may mean a lack of funds for their project and can often result in delays or temptations to cut corners on quality.

How to fix it: Front-loading is often the result of poor project planning, improper bidding, and/or lack of a timely and robust forecast. Bids should ensure that the fees charged in the early phases of a project correlate to the value of the work performed.  Implementing a rolling forecast for each project and ensuring that all bids have a sufficient contingency built into the later phases of a project estimate can both manage or eliminate the risk of front-loading.

The post Most 7 Common Financial Mistakes Construction Companies Make appeared first on VVREDDY & ASSOCIATES.

4 Common problems in accounts payable

Double payments. 

This issue may occur if your vendor unintentionally double bills you. For example: if you paid the 1^st invoice right away, but before your vendor updates your account, the same bill may be mailed out a 2^nd time because your payment wasn’t posted at the time the 2^nd invoice was mailed out. This may lead you to think you haven’t made a payment yet so you mail another payment so your payment won’t be late.

Making a payment prior to delivery. 

Although there are benefits to paying an invoice as soon as you can, what if your shipment arrives and it’s damaged or has missing items? You’re not only out the amount you paid upfront on the invoice for merchandise you don’t have, but you will have to wait even longer for a replacement shipment.

Matching errors. 

If there is a discrepancy discovered between purchase orders, invoices, and other documents, a manual investigation is often required. This error may occur when you pay multiple invoices with one check. For example, You have 3 invoices and all the invoice numbers won’t fit on your payment documentation line. Your vendor may apply the whole amount to only 1 invoice instead of dividing the payment between the 3 intended invoices. Therefore, creating past due accounts on the other 2 invoices and making things more complicated.

Vanishing invoices. 

Sometimes invoices get misplaced or even accidentally destroyed before you are able to enter the data in your accounts payable system. Also, when you’re using digital invoices, you may have a hard time knowing if you have the original or a duplicate invoice.

How to solve these issues?

Update the A/P internal controls. 

You’re accounts payable team can help update the internal process. Be sure to document how the invoices should be handled. You should pay special attention to the separation of duties and full use of the purchase orders to be sure your invoices are accurate.

Use one inbox for A/P. 

When you have all your invoices go to 1 inbox, it will help reduce any chance that an invoice will be paid or received twice. You should also limit access to this billing address for authorized personnel.

Limited access to your cash accounts. 

It’s essential that no one without authorization to your cash accounts, review bank reconciliations. This will help to find potential fraud that may occur as well as uncover potentially erroneous payments.

Use caution with ACH. 

You should ensure tight control of a vendor’s automatic access to your company checking account needs. Ensure that you are receiving supporting invoices with your payments and that any automatic payments are on a timely basis.

Track key performance indicators. 

Create reports for all paid and unpaid invoices. Check out bank security features that will help identify duplicate payments and allow you the ability to control checks for confirmed payments. Your accounting software should help you identify duplicate invoice numbers and duplicated amounts.

The post Common Accounts Payable Errors and Resolutions appeared first on VVREDDY & ASSOCIATES.

Until recently, for most small companies, the strategic guidance of a CFO was not even an option, since financial executives preferred in-house, permanent positions. And, for their part, because it was hard to tell when a scaling company is ready for such a commitment, small and medium-sized organizations have refused to meet the seat. 

However, things are changing: this program will finally be prioritized by small-business owners.

One justification for today’s corporate executives to move from transactional accounting services to the consulting packages of a CFO is simple: more detail is open to managers than ever before. Plus, emerging technology (and they do the job with greater precision) simplify more and more conventional accounting jobs. This frees up accountants, all focused on real-time financial and business intelligence, to make conclusions from the data and apply their skills to more operational guidance. 

What do Virtual CFOs offer?

• In order to generate accurate reports and analyze the findings, a CFO will also provide bookkeeping services that will define and monitor the bookkeeper/controller, providing insight to help guide the ship towards the specified objectives. The effect is that you understand precisely where, where, and how your team can be centered and the stakeholders updated.
• A sounding board, mentor, or guide may be a much-needed CFO. Look for a seasoned veteran who you can trust, not just someone who can fill a spot. In the end, when you strive to meet well-specified targets, you can have a team partner who understands your organization and will help keep you responsible. 
• The finance role can be placed by a CFO as a strategic advantage. If you’re financially upset, odds are your opponents are too, but they’re just not reading this article and searching for a workaround aggressively. A skilled CFO will assist you in reducing waste, effectively deploying cash, and seeking opportunities for greater development or growth. You will be in a position to get ahead of the other organizations in your niche with their assistance. 

On a limited basis, virtual CFO facilities include:

• Collecting funding. The financial tale can be generated by virtual CFOs and can do some light pitching, but do not expect them to spend six months on airplanes pitching VCs or banks around the world.
• Managing IT processes correlated with banking. Don’t expect IT workers, company networks, internet connectivity, security, or CRM/ERP systems to be handled by the virtual CFO.
• Participate in discussions of commissions. The CEO can be trained and coached by simulated CFOs and may be asked for a role in meetings.

Why is Virtual CFO growing tremendously? What are the advantages of Virtual CFO? 

Startups and businesses are now more than ever searching for opportunities to operate smoothly. Where needed, there is pressure to make cuts to personnel and outsource, and this has led to a pattern in employing automated CFO providers over the more conventional full-time CFO in-house. Some of the many reasons why Virtual CFO services are growing are mentioned below:

• Flexibility: You set the conditions for time and expense that fit well for your company when you employ a Virtual CFO (VCFO). This may mean working full-time hours for a certain amount of weeks for the VCFO and then part-time or on a fractional basis. When the specifications alter, you can scale up or down. Without losing the kind of skills and knowledge that you need, you pay for the time and deliverables special to your business. 
• Accounting Expertise: A Simulated CFO who is a Designated Accountant may be selective and hired. You recognize that they have followed the strict standards set by their discipline when you deal with someone who has received a CPA designation, and their experience is current and they are still practicing through Professional Development classes. 
• External stakeholder and professional services liaison: A Virtual CFO is a liaison with stakeholders, lenders, and specialist bodies from beyond. They give the reporting and review further reassurance, and the due diligence and competent supervision of an Appointed Accountant give the third party confidence. 
• Get Up to Speed Fast: A Simulated CFO’s life leaps into a scenario and quickly works out things. They have the experience of joining the mid-process dialog and rapidly assessing what needs to be achieved from a financial point of view, whether it is collecting data, improving financial statements, or introducing better accounting procedures. 

Conclusion

If your business is increasing exponentially and in the near future you plan to require investor funding, a CFO could be important in securing the financing. A CFO can be highly productive in the preparation and transformation if you need to build an in-house financial IT system. A virtual CFO will help ensure that everything goes smoothly if you plan to take on any big financial deals, such as a merger or takeover, and assign responsibilities and challenges to the right people at the right time to prevent missteps.

The post Why is virtual CFO growing and popular in current times? appeared first on VVREDDY & ASSOCIATES.

The seasonality in our Canadian climate brings about many challenges for businesses as they are not immune to the weather and the corresponding changes to:

• Consumer demand.
• Product availability and the supply chain.
• Farming and natural resources.
• Economic forces.

As such, one of the most common concerns for business owners is cash flow management throughout the seasonal ebbs and flows.

Here are some recommendations:

1. Cost Down – At the end of each peak season management and ownership should begin a “cost down”. This will involve a cost reduction process by eliminating or reducing unnecessary variable expenses that are not vital to maintaining the business during the offseason.

2. Employees – Staffing levels should flow with the demands of the business. If retaining key personnel for the next peak season is critical to the business but cash is tight, a strong option is to enter into a work-sharing agreement which is available through Service Canada. Employers get to retain key personnel but can reduce costs by reducing employee hours. Employees, fortunately, are eligible for EI benefits due to their reduced schedules.

3. Financing Options – Seasonal start-up can strain cash flow as there are costs that are necessary to ramp up operations, but the revenues and collection of cash have not yet been realized. Consider a line of credit to access capital when needed for start-up operations or unexpected expenses occur.

4. Forecasting – Having a forecast of expected cash in and out is vital to any business but even more so when it comes to seasonality. A forecast should be continuously updated and monitored as it is a preventative maintenance tool that will allow a business to recognize cash problems before they occur.

5. Payment Terms – Both internal and external payment terms should be reviewed and optimized for cash purposes. Businesses’ billing process needs to be efficient, especially during slow periods. Efficiencies can be gained by reducing payment terms, charging interest on slow-paying customers, and offering flexibility in the method of payment. Vendors should be paid based on priority and the payment terms that were given. Being charged interest on overdue bills can often be avoided by proactively engaging the vendor and negotiating a payment arrangement.

6. Capital Assets – Operating cash should rarely be used for purchases of equipment and other operating assets. Alternatively, said equipment should be leased, financed, or simply rented as needed. This will avoid straining cash for assets that are not needed during slower periods.

The post How Your Business Can Manage Cash Flow Through The Seasons appeared first on VVREDDY & ASSOCIATES.

Monitor Your Spending

This is the time to do a cash flow analysis and keep a very close eye on where your money is going. Maybe you’re still paying someone for services you no longer need, or subscriptions you don’t utilize. Take a look at all your accounts as well as your operating cash flow and be sure to know where every cent is going, and make adjustments if necessary.

Although it sure would be nice to treat your employees to gifts and bonuses right now, don’t if it’s going to be a hardship on your business. Continue to let your employees know you appreciate them by planning some great treats or incentives for them once your business is able to bounce back!

Ask for Help

If you’re having a hard time paying your bills it’s worth asking for a grace period for your payments. Many other businesses are going through a tough time and may say no, but larger companies will likely be able to extend your due date during difficult times. 

Ensure You’re Collecting Any Money Coming to You

Although everyone is going through a tough time right now, you have to ensure your clients and customers know how and when you expect payment from them. If you have any outstanding invoices, follow up on them now, and make sure you’re doing business with people who have a good track record of paying their invoices on time.

This is also a good time to look into local or federal supports being offered to small businesses, and apply if you’re eligible.

Renegotiate Contracts

It’s always a good idea to periodically renegotiate any ongoing contracts you have with landlords, insurance companies, and other businesses you work with. But especially in these unprecedented times, these businesses may be willing to cut you a break on payment and renegotiate terms for the next few months. 

Be Prepared

Tough financial times do generally turn around, but it can take a while. You’ll often go through some bumps in the road before you start to see the upside. Since this is a global situation, and other businesses are going through the same thing, keep an eye on what others in your market are doing and emulate them. When the economy begins its upswing, you must be prepared to start competing again. Although no one can guess when this situation will resolve itself completely it’s a good idea to make financial goals for the future. You can always alter or extend them if you need to.

Use a Professional

Your finances are vital to your success. This means it’s important to have someone who truly knows what they’re doing, as well as someone who knows what to look for with your financial input and output. In other words, a bookkeeper who takes a few hours to balance your books once a month isn’t going to cut it.

The post 6 Tips For Managing Your Startup’s Cash Flow appeared first on VVREDDY & ASSOCIATES.

Do I still have enough knowledge to be handling my own finances?

Let’s be honest, most business owners don’t have a ton of experience or education on managing accounting or financial duties. However, it’s usually how it starts in order for you to get up off the ground. With that said, as your business grows, the accounting usually becomes a bit more complex and there are more factors to think about (tax, growth strategy, raising money, international sales, etc.). It’s important to eventually move to an expert to get full support as your business starts to expand and grow.

Do I have time to handle the finances, and do I want to?

You are probably only doing this to get it done for reporting or tax purposes, not because you want to. You also would be best suited for other tasks in your business, such as managing the development team or the business development and customer relationships. Your goal is to grow and manage a successful business, and usually, finance is not a priority in this. You will start to know when you want to be doing more of the “cool” work and less of the tedious bookkeeping and reporting tasks.

Can I afford a finance team or CFO?

In the first year of business, money is always tight. It’s important to be mindful of where money is being spent, but at the same time be okay with investing in something that will provide a ton of long-term success and growth. In our experience, it’s common for businesses earning 100k per year or more to start outsourcing to a finance team to manage this for them. However, if you are still in that pre-revenue or early-stage revenue range, then we may have an alternative for you…

Finance 101 for Business Owners

Would you like to have more time doing what you love? Are you interested in seeing your business thrive and scale? It’s common for business owners to wear multiple hats at the beginning, but usually, one thing gets missed… finance!

We’ve started from the beginning too, and we’ve helped tons of businesses that are in the same position. We want to help you too! Here’s your chance to get ahead of your business so that you can spend more time driving growth while creating the life and business that you want and simply doing more of what you love.

Picture this…

● Cutting your bookkeeping and admin time in half!● Pulling LIVE reports from your accounting system that is ready to go on a daily, weekly, or monthly basis● Being able to show growth potential over the next 1-2 years with a positive CASH balance● Having actual cash in your business bank account!● Spending less time worrying about your financials, and more time finding ways to grow and scale your business

We would love to be able to do all this for you! However, if you are not ready for someone else to manage it, now is your chance to take full control and implement it on your own!

The post When Is It Time To Outsource Your Business’s Accounting? appeared first on VVREDDY & ASSOCIATES.

That’s why today, the financial experts at Virtual CFO Solutions will be breaking down the important financial statements you need to know.  Here’s how they can be used to leverage opportunities for your business!

What Are Financial Statements?

Financial statements are records and reports of all the financial activity that happens in your business. The most commonly used financial statements include profit & loss statements, balance sheets, and cash flow statements. 

How Are Financial Statements Used?

Financial statements are used as a general health check for your business – are you making a profit? Are your expenses being tracked properly? How can you strategically invest in your own business? 

In addition to your own knowledge, you may be looking for outside investment in your business. Financial statements are an important way for investors to get an unbiased view of how well your business is positioned for growth into the future. 

By making sure that you have accurate, up-to-date financial records, you can address any losses, capitalize on opportunities, and ensure you stay on the good side of the CRA!

How Are Financial Statements Prepared?

Generally, financial statements are prepared by your accountant, but with the advancement of cloud accounting software, these can be automatically generated for you. Our favorite cloud accounting software, Xero, can generate the reports you need from the accounting information you collect throughout the year. 

While having your financial statements available is one thing, ensuring that you are interpreting the data correctly and making the most of those insights is another. Having an expert’s eyes on your financials can help you see opportunities you may have missed, organize your business in a tax-advantaged manner, and ensure your business thrives in the long run. 

What Financial Statements Can Tell You About An Organization

Financial statements give a black and white look into the financial health of a business. The highlights of these documents include:

• Accrued profit
• Cash availability
• Cash received & used
• Where they are allocating money to expenses
• Where they are generating profit from
• How profitable a business is

These are all important factors in future viability and are important to keep an eye on, to ensure that your business is reaching its goals.

Investors and Financial Statements

While financial statements are prepared throughout the year, one of the most important times that you’ll use your financial statements will be when you’re seeking investment. Investors want to know the facts of your business’s financial situation, and financial statements are the best way to accomplish this. 

Why Financial Statements Are Important To Investors, 

Financial statements give investors the hard facts on your business’s financial position. They want to know your profitability, accrued assets, cash use, and investment in the business. Financial statements are an important part of any investment pitch! You may have big dreams, but you need a plan that will back up any big ambitions.

How Financial Statements Help Investors, 

Investors are looking at the big picture of your business, including your vision, goals, strategy, and past success. While it’s important to tell the story of your business, a big part of that is the financial background of your company. Investors are able to measure growth, opportunity, and potential to scale from these documents.

What Financial Statements Do Investors Look At

Investors review profit & loss statements to see how the business has historically performed, as well as pro forma statements, which forecast future growth. Both of these are critical in helping investors see the potential of your business!

Financial Statements For Sole Proprietorship

For sole proprietorships, one of the main measurements that owners keep an eye on is their net income through profit and loss statements. Unlike incorporated businesses, all profit after expenses is considered to be income and is taxed accordingly. This is why it’s so important to properly track expenses and determine how to best manage your profit & income through the business. 

Financial Statements For Corporations

Tracking your financial information accurately becomes even more important when your business is incorporated, as the reporting requirements from the CRA are higher. This is where having a professional to guide you is invaluable. Providing strategic input on retained earnings, dividends, expenses, and salary can help you position your business for growth while providing owners with the income they need. 

Are Financial Statements Confidential Or Public Information?

If you have a privately owned company, whether you’re a sole proprietor or a corporation, your financial statements are not public information. However, if you start trading publicly through stocks and outside investment, these documents do become publicly available to those with a vested interest in your business. 

Looking for guidance on your financial statements? Reach out to the team at Virtual CFO Solutions to prepare and analyze your financial statements, and get expert advice on planning for the future of your business!

The post A CFO’s Guide to Financial Statements appeared first on VVREDDY & ASSOCIATES.

Keeping an eye on your cash flow ensures that you are staying on track with your monthly expenses, including those unplanned ones that seem to always pop up. It will also help you determine when you can start to grow your business, or if you need to adjust your strategy based on seasonal or fluctuating business.

What Makes Up Cash Flow?

There are different streams, or categories, that fall under cash flow; some of which are outgoing and others of which are incoming or are assets.

• Revenue – This is the money that you make for the goods or services that you sell. This is your bread and butter and why you do what you do.
• Costs – This will be your longest list and will include things such as staff, business expenses, building costs (rent, utilities, etc.) costs of materials for goods sold, etc.
• Assets – These are items that are neither incoming nor outgoing but that have value to your company, such as equipment, inventory, etc. Things that you will, or could, get money for in the future.

Bust out an Excel document and mark down all of the cash flow items that apply to your business. Do you make candles for a living? You need to think about the wax and wicks you use, any finished candles you keep in the studio to sell are assets. Do you have a photography studio downtown? Don’t forget to write down rent and each of your utilities as costs, plus all of your camera gear as assets. No matter which industry you’re in, when you sell something, that’s revenue.

Once you have a list of all of your cash flow items, it will be easier to track in your cash flow system.

How to Track Your Cash Flow

There are several different ways in which you can track your cash flow. These days it is recommended to use cloud-based accounting software, such as Xero so that you can access your financial information from anywhere, and you won’t have to worry about losing any of your data. You will also be able to automatically track revenue and expenses and generate reports.

Keeping digital receipts is another way to ensure that you’re accurately tracking your expenses, giving you a more accurate picture of your business’s current financial standing.

Once a month meet up with your accountant or Virtual CFO to ensure that you are on the right track and that everything is balancing the way it should be. This way, if something isn’t measuring up, you can catch it early, knowing you don’t have to go back further than 31 days.

Having a Virtual CFO is a great alternative to having a full-time company CFO. This way you get all the knowledge and expertise, with the savings of not having to pay for a full-time salary.

Common Cash Flow Issues

There are going to be times when you go to balance the cash flow and things just aren’t aligning. Some common cash flow issues are:

• Expenses are too high
• Income is too low
• Not making the most of your assets
• May have forgotten to enter something in
• May not have categorized something correctly

Once you get used to updating your cash flow regularly, you will probably see the number of occurrences for these issues diminish. That’s not to say that there won’t be mistakes or errors, but don’t panic. It could simply just be something was entered in incorrectly, and if not, talk to your Virtual CFO or accountant. The great thing about having everything online is that it is all traceable, up-to-date, and easy to identify opportunities for your business.

We hope that managing your start-up’s cash flow doesn’t seem so scary or overwhelming now. Knowing how important it is, and how much it can save you in the end, monitoring your cash flow is a simple way to invest in the health of your business. Remember, you’re never alone, there are plenty of online resources, plus you can always ask your accountant or Virtual CFO for assistance and advice!

The post Cash Flow 99: How to Manage Your Startup’s Cash Flow appeared first on VVREDDY & ASSOCIATES.