What’s the leading reason why small businesses fail?
Cash flow problems are why a whopping 82% of businesses fail, as per a study by U.S. Bank. Keep in mind that cash flow is more than how much money you have coming in. The timing of that cash flow is critical. Suppose your business operates on an invoicing system, but you don’t get paid for your invoices until after the due date of your loan payments. Cash flow now becomes a critical issue.
Businesses that operate seasonally, such as landscaping can face this problem. They don’t have the cash flow until summer time and they are financially strapped in the slow season. Planning, budgeting and analyzing cash flow statements will ensure that you have control of your cash flow. Using a bookkeeper, QuickBooks (the cloud-based software) and hiring a Certified Public Accountant will help you to stay on top of your cash flow.
Obviously, as Debt Collection Attorneys, we become very involved with the cash flow issues or our small to medium sized business clients. Cash Flow is the life-blood of any business. Small business is particularly vulnerable though to clients, customers, trades,and others not meeting their financial obligations.
To learn more about Marcadis Singer, PA, and our debt collection practice, and more importantly how we can help you, give us a call.