Owners of small businesses can drive an accountant nuts. Some consider their personal and business finances as originating from the same wallet, forcing you to try to drum into them the need to keep those two separate. Others consider the financial side of their business like reaching into their pocket to see how much money is there, which is no way to run a company.
As their accountant, you could offer cash flow management as an advisory service. But how?
Your business owner might see the value but doesn’t want to engage you because they think the principles are so obvious. The same logic applies to diet and exercise.You know people who work with personal trainers at the gym. The principles may be obvious, but someone has to hold their feet to the fire. Ditto cash flow management.
Regardless of industry, all businesses share three characteristics relating to cash flow management: Accounts receivable, accounts payable and the inevitable shortfalls. These shortfalls might be covered by a cash reserve, but more likely, the company has a line of credit with a local bank. Accountants can help in several ways...
Building a Profitable Cash Flow Forecasting Service
This guide will walk you through:
- A framework for understanding the potential revenue from offering cash flow services
- The resources that a cash flow service is likely to consume
- How to define a complete cash flow service that your clients will buy
- Delivering a cash flow service without disrupting your core business
- And much more