• Skip to content
  • Skip to primary sidebar

Header Right

  • Our CPA Firm
  • About Us
  • Contact
  • FREE CONSULTATION

Business Best Practices

How to Properly Manage Your Business Cash Flow

July 3, 2025 by Admin

Golden coins fall out of the metal tap. Vector illustration in flat styleCash flow is the lifeblood of any business. Regardless of how innovative your product is or how many sales you generate, if there’s not enough cash available to cover day-to-day expenses, your business could quickly find itself in trouble. Managing cash flow effectively ensures your company remains financially healthy and resilient during economic ups and downs. Here’s a comprehensive guide to help you properly manage your business cash flow.

1. Understand What Cash Flow Really Means
Cash flow refers to the movement of money in and out of your business. There are two types:

  • Positive Cash Flow: More money is coming in than going out.
  • Negative Cash Flow: More money is leaving than coming in.

While short-term negative cash flow may not be fatal, persistent issues can lead to insolvency. Understanding the timing and sources of cash inflows and outflows is critical.

2. Forecast Your Cash Flow
Creating a cash flow forecast helps anticipate future cash shortages and surpluses. This should be a rolling forecast, updated monthly (or even weekly) to reflect changes in the business environment.

Key components of a forecast include:

  • Projected income (sales, loans, investments)
  • Fixed and variable expenses (rent, utilities, payroll, inventory)
  • One-off expenses (equipment, marketing campaigns)

By forecasting ahead, you can spot potential issues and plan how to deal with them before they become serious problems.

3. Accelerate Receivables
Waiting too long to collect money can starve your business of needed cash. Implement strategies to speed up receivables:

  • Send invoices promptly
  • Offer early payment discounts
  • Use digital invoicing systems
  • Follow up on overdue payments quickly
  • Consider invoice factoring if needed

4. Manage Payables Wisely
While it’s tempting to pay every bill as soon as it arrives, good cash flow management means holding onto cash as long as it makes sense:

  • Take full advantage of supplier payment terms
  • Negotiate better terms when possible
  • Avoid late fees, which can damage supplier relationships

Be strategic: prioritize payments that affect operations (payroll, rent, key suppliers) and delay less critical expenses if needed.

5. Control Inventory Levels
Excess inventory ties up cash that could be used elsewhere. Use inventory management systems to track usage trends and optimize purchasing:

  • Implement just-in-time (JIT) inventory where feasible
  • Identify slow-moving stock and find ways to liquidate it
  • Work with suppliers on flexible ordering

6. Build a Cash Reserve
Having an emergency cash cushion can prevent panic during slow periods. Set aside a percentage of profits each month until you have 3–6 months of operating expenses saved.

7. Monitor and Analyze Cash Flow Regularly
Use accounting software or dashboards to monitor your cash flow in real time. Regularly analyze key metrics like:

  • Operating cash flow
  • Days sales outstanding (DSO)
  • Days payable outstanding (DPO)
  • Cash conversion cycle (CCC)

Reviewing this data will help you spot patterns and make better financial decisions.

8. Cut Unnecessary Costs
Lean operations often translate into stronger cash flow. Audit your expenses regularly:

  • Cancel unused subscriptions
  • Outsource non-core functions
  • Switch to cost-effective suppliers
  • Automate routine tasks to reduce labor costs

9. Secure Financing Before You Need It
If you foresee a future cash gap, explore financing options early while your financials are strong:

  • Business lines of credit
  • Short-term loans
  • Equity investment

Having financing in place can provide a buffer during lean periods without panic borrowing.

10. Educate Your Team
Cash flow isn’t just the finance department’s concern. Train department heads and team leaders on budgeting, purchasing, and financial responsibility. A company-wide culture of financial awareness leads to smarter spending decisions across the board.

Final Thoughts
Properly managing your business’s cash flow isn’t just about survival—it’s about building a strong foundation for sustainable growth. With proactive forecasting, tight control over receivables and payables, strategic spending, and continuous monitoring, your business will be better prepared to weather financial challenges and seize new opportunities.

Remember: Revenue is vanity, profit is sanity, but cash is king. Treat it that way.

Filed Under: Business Best Practices

How to Improve the Value of Your Business Before You Retire

May 13, 2025 by Admin

Inspired mature grey-haired woman fashion designer thinking on new creative ideas at workplace. Smiling beautiful elegant classy middle aged older lady small business owner dreaming in atelier studio.Retirement is a milestone many business owners dream about—but selling or transitioning your business isn’t just about handing over the keys. To ensure a profitable exit, it’s essential to increase your business’s value before you step away. Whether you’re planning to sell to a third party, transition to family, or install a management team, enhancing your business’s worth will make the process smoother and more lucrative.

Here’s a strategic roadmap to help you improve the value of your business before retirement:

1. Start With a Clear Exit Plan
The earlier you plan your exit, the better. Ideally, give yourself 3–5 years. Determine your goals: Do you want to maximize price? Maintain your legacy? Ensure job security for employees? The answers will influence the steps you take.
Action Step: Work with a financial advisor and business consultant to develop an exit strategy aligned with your personal and financial goals.

2. Get a Business Valuation
You can’t improve what you don’t measure. A formal business valuation gives you a realistic view of what your business is currently worth and what factors influence that number.
Action Step: Hire a valuation expert to identify key value drivers and areas for improvement.

3. Strengthen Financial Performance
Buyers look closely at profitability, cash flow, and financial records. Clean, organized, and transparent financials not only boost value but also inspire buyer confidence.
Action Step: Improve your profit margins, reduce debt, and eliminate unnecessary expenses. Implement sound financial reporting systems.

4. Systematize and Document Operations
A business that runs smoothly without its owner is far more attractive than one dependent on a single person. Systems create scalability and reduce perceived risk.
Action Step: Document key processes, create training manuals, and establish standard operating procedures (SOPs) across departments.

5. Build a Strong Management Team
A capable leadership team that can run the business in your absence adds significant value. It shows potential buyers that the business can thrive post-transition.
Action Step: Identify, train, and retain key personnel. Consider offering performance incentives or equity to keep them motivated and committed.

6. Diversify Your Customer Base
Over-reliance on a few clients can be a red flag. Buyers worry about what might happen if a major customer leaves.
Action Step: Expand your marketing efforts to attract new clients, and create a strategy to nurture and retain existing ones.

7. Protect Intellectual Property and Brand Assets
Your brand, trademarks, patents, customer lists, and proprietary systems are valuable assets. Protecting them can significantly increase your company’s appeal and value.
Action Step: Conduct an intellectual property audit and ensure all legal protections are in place.

8. Reduce Owner Dependency
If your name, face, or personal relationships are central to the business, it may be harder to sell. Buyers want a business, not a job.
Action Step: Gradually delegate responsibilities, and shift key relationships to other team members.

9. Address Legal and Compliance Issues
Unresolved legal issues or outdated licenses can derail a deal. Make sure your business is in full compliance.
Action Step: Review contracts, employee agreements, and regulatory filings with a legal advisor to ensure everything is current and enforceable.

10. Increase Recurring Revenue
Predictable, recurring income streams are incredibly attractive. They reduce risk and provide buyers with future cash flow certainty.
Action Step: Introduce or expand subscription models, service contracts, or maintenance agreements where possible.

Final Thought
Enhancing the value of your business before retirement isn’t just about a higher sale price—it’s about creating a legacy, protecting your life’s work, and setting up the next chapter for success. With careful planning and focused improvements, you can exit confidently and profitably, knowing you’ve set your business—and yourself—up for a bright future.

Filed Under: Business Best Practices

Managing Remote and Hybrid Workers

March 10, 2025 by Admin

Whether or not the number of people working from office buildings ever returns to pre-COVID levels, one thing appears certain: Remote and hybrid work models are here to stay. Business owners and other managers who rely on individuals who are working remotely full- or part-time are refining and elevating their management skills so that they get the best out of their employees.

While managing remote and hybrid workers bears many similarities to managing fixed-base teams, it also has some unique aspects. Here are several best practices you may want to consider and apply to your own situation, no matter your level of experience in prior management of remote workers.

Make Your Expectations Clear and Simple
Clarify the hours when employees should be available and accessible. Give employees performance goals and metrics that define success in meeting those goals. Lay out clear guidelines when it comes to after-hours work-related emails and text messages. You want employees to maintain a healthy work-life balance, one that prevents burnout, and ultimately, keeps them working at peak capacity for your business.

Communicate Regularly
Employees want to know how they are performing and whether they are on track to meet the goals you set for them. Check in regularly with them and communicate your satisfaction or your concerns about how they are doing. Regular check-ins are important; just be aware that you can overdo it, since too much oversight may be resented by employees who feel they are not trusted. It’s important to keep them in the loop about any changes in company policy when it comes to wages, benefits, job openings, promotion opportunities, and other changes that may impact them.

Depending on the demographic makeup of your remote employees, you may have to refine your communication style. Talk with your employees and solicit their opinions on what works best for them — texts, Zoom calls, or other forms of instant messaging.

Listen Attentively
Closely related to good communication skills is the ability to listen carefully and attentively to what your employees are saying. You want to give them the opportunity to express what they think about their workloads and talk about any stresses or frustrations they may be feeling. When you listen carefully to what your employees are saying, you are communicating trust and respect.

Build a Sense of Community
Some workers thrive in environments where they can interact and engage with fellow workers face-to-face. That engagement is less important to other workers. One of your goals managing a remote workforce should be to build connections to workers who feel isolated and out of the loop. Employees who feel this way typically do not perform at their highest level. By staying in touch and by organizing the occasional virtual — or in-person — get together in which you build connections and a shared sense of purpose with employees, you can create a sense of community that can have a positive impact on employees and their level of engagement.

Embrace Flexibility
A rigid approach to managing your remote employees may be limiting and not as effective as a more flexible approach. For example, once you determine that the work is being completed on time and is of a high quality, you may want to give employees some leeway as to the specific times they are working.

The work world has changed in numerous ways over the past couple of years. Your management approach has to stay ahead of these changes, especially when it comes to remote work, if your business is to continue to grow and thrive.

Filed Under: Business Best Practices

How Volunteering Can Benefit Your Business

January 2, 2025 by Admin

When people think of volunteering, they often imagine individuals giving their time and effort to help others. However, the positive impacts of volunteering extend beyond personal satisfaction—it can also significantly benefit your business. Whether you’re a small startup or a large corporation, integrating volunteer efforts into your business model can strengthen your brand, engage employees, and build lasting relationships within your community.

Here’s how volunteering can be good for your business:

Enhances Your Brand Reputation

Corporate social responsibility (CSR) is more important than ever. Customers and clients today are more inclined to do business with companies that actively give back to the community. By participating in volunteer activities, you can showcase your commitment to making a positive social impact. This helps differentiate your brand from competitors and fosters a positive perception among customers, partners, and the public.

When people see that your company is involved in meaningful causes, they associate your brand with trust, ethics, and compassion. Over time, this goodwill can turn into brand loyalty and customer retention, creating long-term value for your business.

Boosts Employee Morale and Engagement

Employees want to feel like they’re part of something bigger than just earning a paycheck. By encouraging and organizing volunteer opportunities, you give employees a chance to work together on causes they care about, which can increase their job satisfaction and sense of purpose. This, in turn, can boost morale and engagement, leading to higher productivity and lower turnover.

In fact, studies show that employees who participate in corporate-sponsored volunteer programs tend to feel more fulfilled at work. It also provides a great opportunity for team building, helping employees bond in ways that go beyond the typical workday routine.

Develops Skills and Leadership

Volunteering can offer employees new experiences and challenges that develop valuable skills. Whether it’s project management, communication, problem-solving, or leadership, volunteering often requires individuals to think outside the box and work in different settings. These experiences can foster personal growth and translate into improved performance in the workplace.

Furthermore, employees who take on leadership roles in volunteer projects can enhance their managerial and organizational abilities, which can later benefit your business when they bring those skills back to their everyday roles.

Builds Stronger Connections with the Community

Volunteering allows your business to connect with the local community in a meaningful way. By participating in initiatives that address community needs, your company becomes a key player in the fabric of the neighborhood, creating a positive relationship with local stakeholders.

These connections can lead to new business opportunities, partnerships, or collaborations. Moreover, a strong presence in the community can open doors for customer growth, as locals are more likely to support businesses that actively invest in the well-being of their area.

Attracts Top Talent

Many job seekers today, especially younger generations, are looking for more than just a paycheck. They want to work for companies that have a purpose and contribute to social good. By highlighting your company’s volunteer efforts, you can attract talented individuals who align with your values and are eager to contribute to your mission.

Incorporating volunteerism into your culture can make your company more appealing to candidates who want to feel connected to something meaningful beyond just their daily tasks.

Generates Positive Publicity

Participating in community events or sponsoring charitable causes is a great way to generate positive press for your business. Local media outlets, bloggers, and influencers are often interested in covering stories that highlight businesses making a difference. These stories not only spread awareness about the causes you support but also provide free, organic promotion for your brand.

Sharing your volunteer efforts on social media can also increase engagement with your audience, further enhancing your online presence and building a community around your brand.

Creates a Culture of Giving

Volunteering can become a core part of your company’s culture. When businesses encourage volunteerism, they foster an environment where employees are motivated to contribute to something greater than themselves. This creates a sense of pride and camaraderie within the organization, and employees are more likely to stay committed to a workplace that values giving back.

A culture of giving also tends to attract clients and partners who share similar values, fostering deeper, more meaningful relationships that extend beyond transactions.

Final Thoughts: A Win-Win Strategy

Volunteering isn’t just a nice-to-have activity for businesses—it’s a powerful tool that can help strengthen your company’s culture, improve your brand image, and create lasting bonds with the community. By encouraging volunteerism, you are not only doing good for society, but you are also cultivating an environment that benefits your employees, customers, and business growth.

Incorporating a volunteer program or supporting charitable causes is a win-win strategy that can deliver long-term benefits to both your business and the communities you serve.

Filed Under: Business Best Practices

Tips for Managing your Business’s Online Reputation

December 17, 2024 by Admin

Customer review good rating concept, hand pressing user and five star icon on visual screen for positive customer feedback, testimonial and testimony, user comment and feedback for review.In the current social media landscape, it’s important to manage your business online and maintain a positive online reputation with the general public.

What is Online Reputation Management

Online reputation management is all about how you are perceived by the internet. People use the internet to check out your reviews and social media to see if your business is right for them. Having an online presence can help your business be susceptible to reviews and positive feedback. Online reputation management is monitoring the reviews that previous clients have stated. These reviews are trusted by the public, and your responses to these reviews also can help or hurt your online reputation.

Online reputation management is becoming increasingly more important in daily life for business owners. This refers to the widespread opinion the general public has about your business. Shared experiences about your business create a general pattern that will influence people whether or not you are the right company for them.

Why Should You Care About Your Online Reputation?

You only get one chance at a first impression and that becomes your reputation. In today’s digital world, people can make their first impression about your business without even entering your establishment. Your online reputation is based on people trusting online reviews. If you have negative reviews, a prospective client can mentally cross off your business because online reviews are seen as credible with your client giving their honest opinion. If there is a pattern with reviews and no sense of management, your online reputation is in trouble. Having good reviews, however, can help your business gain traction. If most clients love you, why won’t new customers? Online trust is very important and a huge key to your success.

A reputation is very difficult to fix if it becomes tarnished. In today’s world, social media runs rampant. Many individuals are able to create platforms that gather traction. If your business becomes a topic of discussion, many people can share both good and bad interactions they have had with you. This can influence people listening to either engage with or avoid your business. Having a positive reputation can benefit your business because most businesses utilize referrals to gain more customers.

User-generated content is becoming increasingly popular on the internet. People trust other people and their opinions. A quick google search is not cutting it anymore. The gray area of what is genuine and what is paid advertising makes it hard for people to trust companies. User-generated content is seen as a third-party endorsement where normal people talk honestly about companies which can help business if it’s positive content. This essentially is the new wave of “word of mouth” but digitized.

5 Tips for Online Reputation Management

  • Look at Current Reviews – Take a look at the existing online reviews for your business and see what your average rating is and what is the most popular review website. Look to see if there are any reviews that you can respond to. After understanding what people are saying about your business, you can develop an online reputation plan.
  • Reply Honestly to Reviews – Respond to every review like it is a conversation. Thank the people with the positive reviews. For negative reviews, apologize about the negative experience and ask for them to elaborate with you by scheduling a phone call.
  • Ask For Feedback – Ask trusted customers to give you feedback on how your business could improve, as well as internal employees. Showing that you care about their opinion will generate a positive reaction. Ask for people to give you reviews online so more people will come to you.
  • Use Your Social Media Accounts – Have an active social media and respond to your audience. Having a presence on social media shows that you are with the current time. Engage with your audience and create personalized content for your field.
  • Don’t Get Discouraged – There can always be a random bad review. As long as you look attentive and try to address it with the individual, there is nothing to worry about. Just try to have the best attitude while talking to customers, both face-to-face and online.

Filed Under: Business Best Practices

7 Effective Strategies for Small Businesses to Boost Lead Generation

November 14, 2024 by Admin

Sales funnel and lead generation. Marketing strategy. Sales pipeline management, representation of sales prospects, customer prospects lifecycle concept. Vector isolated concept creative illustrationIn the highly competitive landscape of small businesses, generating leads is crucial for sustaining growth and ensuring long-term success. However, with limited resources and budgets, it can be challenging for small businesses to navigate the complex world of lead generation. Fortunately, there are several effective strategies that small businesses can implement to increase their leads and ultimately drive revenue. In this article, we will explore seven actionable tactics that small businesses can employ to enhance their lead generation efforts.

1. Define Your Target Audience: Understanding your target audience is essential for effective lead generation. Small businesses should invest time in researching and identifying their ideal customers, including their demographics, interests, pain points, and purchasing behavior. By defining a clear target audience, businesses can tailor their marketing messages and campaigns to resonate with potential leads, increasing the likelihood of conversion.

2. Optimize Your Website for Lead Generation: Your website is often the first point of contact for potential customers, so it’s crucial to optimize it for lead generation. Ensure that your website is user-friendly, mobile-responsive, and contains clear calls-to-action (CTAs) prompting visitors to take the desired action, whether it’s signing up for a newsletter, requesting a quote, or making a purchase. Implementing lead capture forms and offering valuable content, such as eBooks or whitepapers, in exchange for contact information can also help attract and retain leads.

3. Leverage Social Media Marketing: Social media platforms offer small businesses a powerful tool for reaching and engaging with their target audience. Develop a strong presence on relevant social media channels where your audience is most active, and regularly share compelling content, including blog posts, videos, infographics, and product updates. Engage with your audience by responding to comments, addressing questions, and participating in relevant discussions to build trust and credibility, ultimately driving leads through social media channels.

4. Invest in Search Engine Optimization (SEO): Improving your website’s visibility in search engine results is essential for attracting organic traffic and generating leads. Conduct keyword research to identify relevant search terms related to your business, and optimize your website’s content, meta tags, and headings accordingly. Additionally, focus on building high-quality backlinks from reputable websites in your industry to enhance your website’s authority and improve its search engine rankings, driving more organic traffic and leads over time.

5. Create Compelling Content: Content marketing is a highly effective strategy for attracting and nurturing leads throughout the buyer’s journey. Produce high-quality, informative content that addresses your audience’s pain points, challenges, and interests, and distribute it across various channels, such as your website, blog, social media, and email newsletters. Content formats can include blog posts, articles, videos, podcasts, case studies, and webinars, catering to different preferences and consumption habits among your target audience.

6. Implement Email Marketing Campaigns: Email marketing remains one of the most cost-effective and impactful ways to nurture leads and drive conversions for small businesses. Build and segment your email list based on factors such as demographics, purchase history, and engagement levels, and personalize your email campaigns to deliver relevant content and offers to each segment. Experiment with different types of emails, such as newsletters, promotional offers, product updates, and automated drip campaigns, to keep leads engaged and move them further down the sales funnel.

7. Utilize Paid Advertising: While organic strategies are valuable for long-term growth, paid advertising can provide immediate results and complement your overall lead generation efforts. Experiment with pay-per-click (PPC) advertising on platforms like Google Ads and social media ads on platforms such as Facebook, Instagram, and LinkedIn to target specific demographics, interests, and keywords relevant to your business. Monitor and optimize your ad campaigns regularly to maximize ROI and generate qualified leads within your budget constraints.

Small businesses can significantly increase their leads by implementing a combination of these proven strategies. By defining their target audience, optimizing their website, leveraging social media, investing in SEO, creating compelling content, implementing email marketing campaigns, and utilizing paid advertising, small businesses can attract, engage, and convert leads effectively, driving sustainable growth and success in the competitive marketplace. Remember to track and analyze the performance of your lead generation efforts regularly, and adjust your strategies as needed to achieve optimal results over time.

Filed Under: Business Best Practices

  • Page 1
  • Page 2
  • Page 3
  • …
  • Page 9
  • Next Page »

Primary Sidebar

Our Memphis CPA Services

  • Small Business Acccounting
  • QuickBooks Accounting
  • New Business Advisory
  • Tax Services
  • Accounting by Industry

Follow our Blog

Search

Categories

  • Business Best Practices
  • Business Tax
  • Covid
  • Incorporation
  • Individual Tax
  • QuickBooks
  • Real Estate
  • Small Business Taxes
  • Uncategorized

Connect

Memphis, TN CPA Firm

5100 Wheelis Drive, Suite 110
Memphis, TN 38117
901-685-9411

Copyright © 2024 · https://www.rikardneal.com/blog