Common Sense Profits, LLC

Cash Management

Cash is like oxygen to a business. Managing cash requires understanding your business’ cashflow. Cash flows into a business through collected revenues, the disposition of business assets, new investment capital, and credit. Cash flows out of a business through its operating expenses, inventory purchases, debt servicing, capital expenditures, and distributions.

Our cash management strategies will help to ensure that your business can cover fixed recurring expenses, variable recurring expenses, and reinvestment targets for business growth.

It is achieved by first determining a schedule of cash outflows by month. Then determining if the anticipated inflows of cash from revenues, for each month, is sufficient to cover monthly cash outflows, as indicated by the schedule. If monthly revenues at any point in the future is not enough to cover the outflow, then plans can be created to invest more capital, establish lines of credit, or develop a sale plan to increase revenues.

By learning how to manage your cash in this way, you can start to feel more confident about knowing what is required to sustain and grow your business.