In accounting, the cash cycle refers to the time between when you first spend cash for a job until you receive full payment for a job. There are several steps in between and some of these steps will use up all of the cash you have in the bank before you receive more cash. This is where we help!
Most business owners, especially contractors, do not realize that if they are invoicing customers that pay them at a later date, they are giving loans to their customers. If you were to ask the same owners for a loan for the same amount as one of their jobs, they would most likely laugh and tell you they just don’t have the money. However, there is no difference.
We work with business owners to help them understand that Dave Ramsey’s techniques are fantastic, especially in their personal life, but if they are extending credit to their customers, they are violating one of Ramsey’s cardinals to never a borrower or a lender be. You will cripple yourself if one side of the equation is cash only while on the other side you are lending out all of your cash!
Some of the key tools in helping a business owner make it from one end of the cash cycle to the other are:
- Establishing lines of credit with the vendors and with the bank
- Profit planning
- Projecting cash flow in order to know when the best times are to spend your cash
- Using the State Construction Registry to create urgency for your customers to pay you
- Helping improve your A/R procedures and collections
- Debt reduction and A/P management
Call now to see how we can help you have cash in the bank and be able take your profit when you are paid rather than months down the road or not at all!
Importance of Cash Flow Management
Cash flow management is the heartbeat of business. A solid foundation is crucial for any construction project; similarly, your company’s success hinges on proper cash flow management. Our cash flow management services are designed to give you peace of mind and ensure your business runs smoothly.
Benefits of Cash Flow Management
Accurate Forecasting
Imagine having a crystal ball that shows you the future of your finances. With our cash flow forecasting services, you can achieve just that! Accurate forecasting allows you to plan ahead, make informed decisions, and avoid unexpected financial surprises.
Real-time Visibility into Spend
Get a clear view of your spending with our real-time cash flow visibility tools. Our cash flow assistance lets you monitor your expenses as they happen so you can stay on top of your finances. It’s almost as if you’re getting a pair of X-ray glasses for your budget!
Compliance with Spending Policies
Stay compliant and keep your spending in check with our comprehensive cash flow control services. We help you adhere to your spending policies, ensuring dollar is spent wisely. Our cash flow management solutions make compliance feel like a breeze.
Cash Flow Management Solutions for Contractors
At Foundation Accounting & Consulting, we specialize in cash flow for contractors. Our cash flow growth strategies are tailored to meet the unique needs of construction businesses, helping you secure cash flow stability and enhance your cash flow.
Our Cash Flow Services
Our suite of cash flow services includes everything you need to take control of your finances. We’ve got you covered with everything from cash flow guidance and support to cash flow improvement strategies. Our goal is to provide business cash flow solutions that bring a smile to your face and a boost to your bottom line.
Cash Flow Strategy for Success
Our cash flow support team is dedicated to providing you with the tools and insights you need to secure cash flow and achieve your business goals.
Cash Flow Management FAQs
What is cash flow management, and why is it important for my construction business?
Cash flow management involves tracking, analyzing, and optimizing the flow of money in and out of your business. For construction companies, effective cash flow management ensures you have enough funds to cover expenses, invest in new projects, and grow your business. Getting a handle on your cash flow will allow your business to thrive instead of struggling to break even.
How can Foundation Accounting & Consulting help improve my cash flow?
We offer a range of cash flow management services designed to improve your business’s financial health. Our services include cash flow forecasting, real-time visibility into spending, and compliance with spending policies. We provide tailored business cash flow solutions to help you secure cash flow stability and support your growth in the construction industry.
What are the benefits of accurate cash flow forecasting?
Accurate cash flow forecasting allows you to predict future cash needs, plan for upcoming expenses, make informed investment decisions, and ensure that you always have enough funds to cover your obligations. With our cash flow forecasting services, you can confidently navigate your financial future.
How does real-time visibility into spending work?
Real-time visibility into spending allows you to monitor your expenses as they occur, identifying any discrepancies, making adjustments as needed, and ensuring that your spending aligns with your budget. Our tools provide you with up-to-the-minute insights into your cash flow, giving you complete control over your finances.
Why is compliance with spending policies important?
Compliance with spending policies helps you manage your resources effectively and avoid overspending. By adhering to your budget and financial guidelines, you can ensure that every dollar is used wisely. Our cash flow control services help you stay compliant and maintain financial discipline.
What makes Foundation Accounting & Consulting’s cash flow services unique?
We understand the unique challenges of construction companies and provide customized cash flow management solutions to meet your specific needs. Our team is dedicated to making cash flow management a fun and rewarding experience, helping you achieve financial stability and growth.
Can you help with cash flow strategy development?
Absolutely! We specialize in creating cash flow strategies tailored to your business. Our cash flow guidance and support services are designed to help you develop a comprehensive plan that ensures your business’s financial health and supports your long-term goals.
How do I get started with your cash flow management services?
Getting started is easy! Contact us today to schedule a consultation so we can collaborate with you to develop a customized cash flow management plan that fits your business.