03/29/2018 Cash Flow Management Tips

3/29/2018 QBOchat

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Thu, Mar 29 2018 20:03:33

3/29/2018 QBOchat

Cash Flow Management Tips

  1. Welcome everyone to #QBOchat. Please introduce yourselves to the group -> Name, location & name of biz.
  2. #QBOchat is a weekly tweetchat about QuickBooks Online, the best in class accounting platform for #smallbiz
  3. Erin in Whitefish! Enjoying the sunshine and all the melting snow! #QBOchat
  4. Hi, Everyone! ? Morgan w/ ClockShark here from blooming & beautiful Chico, California! Excited to weigh in on another exciting #QBOchat discussion. ?
  5. @QBOchat Hey! Valerie from Intuit here. Tweeting from cloudy Chicago. Excited to be back in the chat after a few weeks of scheduling conflicts. #QBOchat
  6. Happy Thursday, #QBOChat fam! Megan with Mobius Group checking in from sunny Saint Paul MN. pic.twitter.com/XHUTk3mw1m
  7. @BradCelmainis Hey Brad! So good to have you join us! Glad to see you on the most recent #AccountingTop100 leaderboard 馃檪 #QBOchat
  8. @BradCelmainis I love the pics of your bike & so happy you are here! #QBOchat
  9. #QBOChat Hi all! Barb from Dryrun in Ontario Canada here to discuss my favourite thing! pic.twitter.com/4QPyBML7TS
  10. Happy Thursday Everyone! Matt here from LedgerDocs. How are you celebrating Easter this year? #QBOchat pic.twitter.com/JXWsRw3p4s
  11. @QBOchat Hi everyone! Alan here with Avalara in Seattle, hope everyone is having a grand day! #QBOchat
  12. @ledgerdocs I’ll be on my way to sunny Mexico, to spend a week in the desert. Can’t WAIT! #QBOchat
  13. Audrey Blackburn checking in with Blackburn Consulting in windy NC. #QBOchat
  14. Hi friends! Harika from Circulus here chatting in from Dallas, TX! How is everyone today? #qbochat
  15. Popping in for a little bit from Intuit Mountain View ??鈥嶁檧锔 #QBOChat
  16. The first question is right around the corner, remember to use A1, A2, etc when answering a question. #QBOchat
  17. Ufuoma, owner of Goshen Bookkeeping & Consulting, LLC from Atlanta, GA. How is everyone doing today? #qbochat
  18. Hello #qbochat, it’s Shuyi from Bento for Business in Chicago. Love today’s topic and can’t wait to talk about #cashflow management
  19. @TotallybookedNY Hi Kelly! I’ve been totally feeling love from you this week — THANK YOU! #QBOchat
  20. @MeganTarnow I’ll bet it’s better than that! If you’d like to join the leaderboard, just go here and click the “join” button!  http://avlr.co/2tO7Yo9 

    Or, if you’d like, send us a DM and I’ll get you added manually 馃檪 #QBOchat

  21. A1: Not keeping your books current! If you don’t know where you are at, how can you figure out if there will be a cash issue in the future? #QBOchat
  22. Hey @QBOchat Stars! Great to see everyone! It’s a beautiful day here in Houston. #qbochat
  23. A1: timing issues, customers not understanding that invoicing =! cash, and the always underestimated future sales pipeline </3
  24. A1: No books, not tracking anything, tracking it but not paying attention to the cash flow. Looking at what is coming but not what is going on in the meantime and the worst is poor spending habits. #QBOchat
  25. @CathyIconis 100% agree! How can an owner know what to do if they only have data to look at from several months ago! #QBOchat
  26. A1: Your operations aren’t setup to match your incoming revenue with your outgoing expenses well > too many expenses while waiting on revenue to hit is bad. #QBOchat
  27. A1: A lot of small companies don’t understand that profit does not equal cash flow, and this can be fatal to a business. #QBOchat
  28. @vheckman @QBOchat Or INACCURATE A/R!! Why won’t people review the Open Invoices report?? #qbochat
  29. Q1 – Not setting up their accounting end-to-end, which ultimately means an incomplete perspective #qbochat
  30. A1. — When I first started I was too busy working IN my business instead of ON my business. I’d for get to track my time, or send invoices…I quickly realized that stuff like this directly effects cash flow. #qbochat
  31. A1 – Not tracking how鈥攁nd how much鈥攜ou鈥檙e spending your money can be a major cause for cash flow issues鈥 little purchases do add up, especially for #smallbiz! #qbochat
  32. @BradCelmainis @ReceiptBank We recently started our partnership with @ReceiptBank and it has been a Win-Win for everyone! Timely information with full support! Can’t beat it! #QBOchat
  33. Q2: What are some basic steps to get your #smallbiz organized to guard against cash flow issues? #QBOchat https://t.co/6wHeL0jhPC

    Q2: What are some basic steps to get your #smallbiz organized to guard against cash flow issues? #QBOchat pic.twitter.com/6wHeL0jhPC
  34. A1: overspending; spending faster then it comes in the door #qbochat
  35. A1. @fundbox actually really helped me to play catch up and fund growth while I figured it all out …  http://fbx.go2cloud.org/SH60  #qbochat
  36. @bentoforbiz You guys could really help with that by having budgets prepaid and you guys can stop from overspending that way. #QBOchat
  37. A2: Keep your books current, track your spending, quarterly or more often if needed you review your expenses for items to cut. Have a cash flow plan for at least 3-4 weeks out to know what is/may be coming. Stay current on AR collections. Collect money upfront. #QBOchat
  38. #QBOchat A1 insufficient capital. Current operating cash flows used for long term investment leaving nothing to pay current opec  https://twitter.com/qbochat/status/979435163288526849 
  39. @QBOchat A1. Looking at their bank account instead of accounting software when making purchasing decisions #qbochat
  40. A2: Shorten A/R, longer A/P. Don鈥檛 tie up cash in inventory. #QBOchat
  41. Hi everyone late to the party! Natasha Gorman BDM @IntuitAccts here from Denver CO #qbochat
  42. A2: Set aside funds for a reserve to cover things such as payroll and payroll taxes in the event that cash flow dries up for a period. I suggest this to all my clients. #QBOchat
  43. A2: Understanding all the different reports available at your fingertips. Ex: Comprehending the difference between a cash method vs. accrual method P&L and what both tell you about now AND tomorrow #qbochat
  44. A2: Setting monthly attainable revenue goals that include a plan to reduce the collection period. #qbochat
  45. A2. I started to set aside time each week to just stay on top of billing & unfortunately collections…pause my inbox and just focus on keeping my own books. As I progressed I now only value price or flat rate, no chasing people for money anymore! #qbochat
  46. A2: What @TJSCMA said … RT A1: Personal use of company funds!! Don鈥檛 get me started. #QBOchat pic.twitter.com/RUhiaG94fV
  47. A2: require payment before performing the work. Consider (my new fave) @DivvyPay to set CC spending budgets to maintain accountability #QBOChat
  48. A2: Don’t swipe that credit card if you don’t have the cash to pay the bill in full upfront! #qbochat
  49. A2: Budget, stay on top of collections/AR, and integrate systems so data is feeding in timely and cleanly! #QBOchat
  50. A2: Collect from customers quickly, and stretch your payables. As before, keep bank and credit card balances current at all times in QBO. @ReceiptBank and #QBO bank feeds, FTW #qbochat  https://twitter.com/qbochat/status/979436700782022656 
  51. A2: Update your books in an accounting software weekly and reconcile monthly. #qbochat
  52. A2: My suggestion would be to use a cash flow worksheet and to make sure to collect receivables as soon as possible! #QBOchat
  53. Q3: How far out should businesses be looking at forecasting their cash flow? #QBOchat https://t.co/tP4JkZ7mOM

    Q3: How far out should businesses be looking at forecasting their cash flow? #QBOchat pic.twitter.com/tP4JkZ7mOM
  54. A2 #smb Have a sit down with your accting pro – spend the time and developing the habits to actively manage cash flow (ie do what your bookkeeper says) and understand that cash flow optimization -present and future- is like going to the gym – you get out what you put in! #qbochat
  55. @QBOchat Hi everyone!! Alex here with TSheets by QuickBooks in sunny Boise, ID. #LearyLate after our meeting ran a little over!! #QBOchat
  56. Q3: I work with my clients to forecast out as far as we possibly can while keeping it as accurate as possible. More notice you have of what is coming the better. #qbochat
  57. Building those habits can be hard but end up putting the #smb in the best situation they can be! #QBOchat  https://twitter.com/mydryrun/status/979438328507445249 
  58. A3: It depends on the industry. A cafe will deal with tons of small transactions, one or two (or ten) may not have a huge impact on the numbers. A consulting business may rely on a large payment from a big client in two months to budget for expenses this month. #qbochat
  59. Hi everyone! Sarah from Aero here! beyond #LearyLate! But happy be be here now! #QBOChat
  60. A2: My fav 1st thing to do is a cost audit. Look into what you are spending. There are always some costs to cut #qbochat
  61. A2: also reevaluate the services you are paying for. Are you fully using? Is it the best solution: #qbochat
  62. A3: Triage: 3 months; Long term cash flow = 1 yr sales pipeline. If you don’t have $$ on March 28, 2018 it’s because you needed to conference with your bookkeeeper about this on March 28, 2017 #qbochat #loveyracctingpro #qbochat
  63. @SherrellTMartin You definitely need to come back next week to chat about cost cutting!! #QBOchat
  64. A2: create a budget to make sure your planned income exceeds planned expenses #qbochat
  65. #QBOchat understand your business, honestly assess performance based on past results, have a plan & have accurate accounts  https://twitter.com/qbochat/status/979436700782022656 
  66. @SherrellTMartin You keep talking my language! Love cutting costs and budgeting. Without it, you are letting money run out the door! #QBOchat
  67. A2 – Important step in preventing cash flow issues: Think hard about budgeting, set reasonable spending limits beforehand (you can do that with Bento). And actually enforce the rules you set (again, Bento does that for you). #qbochat
  68. A3: It really depends on the business. Some businesses are okay with a 3 month forecast while others need annual forecasting #QBOchat
  69. A2: clean up a/r – get those past dues funds in the door then review pricing structure #qbochat
  70. Q4: What are the differences between a business's profit and their actual cash flow? #QBOchat https://t.co/XtOqYx97QC

    Q4: What are the differences between a business’s profit and their actual cash flow? #QBOchat pic.twitter.com/XtOqYx97QC
  71. A3: Depends on the business and capital structure. When I worked in industry, I always looked ahead at least 3 months in the companies I helped run. #qbochat  https://twitter.com/qbochat/status/979438264540188672 
  72. @BConsultingNC @SherrellTMartin But you can’t save your way to success. You have to make strategic investments to get where you need to go. #QBOchat
  73. A3 – Depends on the size of the business and what you do. Of course, forecasting cash flow should start early, but there鈥檚 a balance between being early and being as accurate as possible. #qbochat
  74. @CathyIconis I am at my one and only offsite client that day but I will try to make it #qbochat
  75. @MeganTarnow @SherrellTMartin It is simply a starting point. Most businesses I deal with are running at 85% or more OPEX. Got to start somewhere. It’s the first step not the last. #QBOchat
  76. Q4: Need to track both. Poorly managed cash flow can put a #smallbiz at immediate risk and quickly! #justopsproblems #qbochat
  77. @BConsultingNC @SherrellTMartin As someone who stumbled into accounting, I hadn’t heard of OPEX until this week when I started playing with @spotlightrep #synergy #QBOchat
  78. A4: Sooo many things. Again that dreaded Statement of Cashflows comes back to haunt me! #QBOchat
  79. Q4: Profit is how much money I will add to my bank account if I manage my cash flow properly. 馃檪 #QBOchat
  80. Pricing is a very interesting point given we are in a world of low inflation and increasing competition further pressuring prices. This may be the most important issue for small business #qbochat  https://twitter.com/sherrelltmartin/status/979436821032644609 
  81. I am having THE BEST TIME preachin’ to this choir about cash flow! ?鈿★笍? #qbochat
  82. @TJSCMA And that’s HINDSITE! Forecasting cash, esp for my #nonprofits who have prepaid expenses & deferred revenue, can be a BEAR! #qbochat
  83. @MeganTarnow @tsheets @TJSCMA @avalara @QBOchat Ta-da! Right here! ? Today is trying my multi-tasking skills to their max, so I’ve been observing mostly today in #qbochat

    Thanks for including me in the GIF part-ay @MeganTarnow pic.twitter.com/0RPi5Vgn4n

  84. @MeganTarnow @BConsultingNC your right they do need a strategy but first they need to see where they are at. have to plug the money leaks first to stop the flooding then strategize on how to rebuild the boat #qbochat
  85. @BConsultingNC Unless you are doing any investing or financing activities. Love the cashflow statement! 馃檪 #QBOchat
  86. @MeganTarnow @TJSCMA But #nonprofits need cost cutting just as much as for profits. They tend to be a little better at it so we have to be more creative. #QBOchat
  87. Q5: How does looking backward help a business project future cash flow? #QBOchat https://t.co/I2DKnfKOiT

    Q5: How does looking backward help a business project future cash flow? #QBOchat pic.twitter.com/I2DKnfKOiT
  88. It’s an absolute challenge balancing your short-game and long-game. I’ve heard enough stories of owners being overly focused on one or the other. Often people don’t make strategic investments in their people/stores/experiences to ensure long-term success #qbochat
  89. @BConsultingNC @TJSCMA A lot of times there is just so little to cut! They tend to run pretty lean, most of the time. #qbochat
  90. @SharmanRose It is an interesting point. I have a few small biz services providers that haven’t raised their rates on me in years. I am happy to pay less, of course, but always surprised they don’t ask because I am sure their own expenses have increased in that time. #qbochat
  91. A4: Profit assumes you鈥檝e collected on all your A/R and paid all your A/P which is rarely the case. Add back depreciation. That ain鈥檛 cash. #qbochat  https://twitter.com/qbochat/status/979439734643666945 
  92. A3: minimum 6 month but idealy 12-18 months. Hoping @mydryrun can help me automate #qbochat
  93. @MeganTarnow @TJSCMA True. The small ones do. I deal with some that have rampant spending because they are larger. #QBOchat
  94. A5: Looking in the past lets us know what potential is available and where we may be over or under spending #QBOchat
  95. @JOngQBCommunity Absolutely! You have to invest in your foundation, to be able to build to the future. #qbochat
  96. A5: ex路tra路po路la路tion – the action of estimating or concluding something by assuming that existing trends will continue or a current method will remain applicable. #QBOchat
  97. A5: Seasonality, bus. cycle, trends are useful to inform the future – ie. active cash flow management but TOPS is a good set of books + business owners’ imagination graphed in an apples to apples fashion. But then I’m biased. #biased #cashisqueen #qbochat
  98. A5: the past is often a predictor of the future, but not always. Don鈥檛 live in the past unless it鈥檚 relevant to future operations #QBOchat  https://twitter.com/qbochat/status/979441524802052096 
  99. A5: Past performance can be a predictor of future activities when you take into account current qualitative & quantitative factors #QBOchat
  100. Q5: You can’t know where you are going if you don’t know where you have been. #QBOchat
  101. A5. #qbochat … we have to learn from our past mistakes, as well as our successes. When it comes to cash flow this directly applies. Learning that you should prolong your AP, or reduce your AR by taking pre-payments are lessons learned! pic.twitter.com/77kwlNPTAr
  102. Q6: What apps can #smallbiz use to help fight cash flow issues? and what do they do? #QBOchat https://t.co/N1k8DfxJ9j

    Q6: What apps can #smallbiz use to help fight cash flow issues? and what do they do? #QBOchat pic.twitter.com/N1k8DfxJ9j
  103. A4: Profit = what’s earned after expenses; it tells you how your business did #qbochat
  104. A5: Recognizing patterns to make smart decisions, today and tomorrow! #qbochat
  105. A4: Cash Flow = funds on hand, or lack of, after expenses are paid #qbochat
  106. @avalara @MeganTarnow @tsheets @TJSCMA @QBOchat Haha! ? Glad you liked it, Alan. #qbochat is proving that GIFs and accountants go together like love & marriage. ?
  107. A6: @ReceiptBank has been huge in decreasing the delay to get source documentation! @billcom for both payables and receivables as well! #QBOchat
  108. @SherrellTMartin If they work with us then it WILL be reality. In my biz it is a reality because I manage my cash flow. 馃檪 #QBOchat
  109. A6: I repeat @ReceiptBank and #QBO bank feeds. So easy to stay on top of cash. Can鈥檛 wait for their 鈥減re-reconcilation鈥 feature. Forecasts are useless without a good starting point #QBOchat  https://twitter.com/qbochat/status/979443260585336833 
  110. @ledgerdocs @BradCelmainis Deferred, prepaid, accrued, etc are just really mean accounting terms. This is where we all turn into educated guessers versus living in reality. #QBOchat
  111. A6: #smalbiz has great success with @mydryrun due to its flexibility and ease of use but the REAL good times start when accting pros and #smb tag team inside a Dryrun forecast. Numbers ppl do the actuals, #smb does the sales pipeline = CF NIRVANA #qbochat
  112. A5 – Just so you don鈥檛 repeat the same mistakes… do get a clear picture of what you鈥檝e been spending on, whether a project cost a bit more than intended, etc. It would help to have a dashboard for that鈥..hey, we do 馃檪 #qbochat
  113. Q7: What are some tips to help a small business normalize their cash flow? #QBOchat https://t.co/XRJdhTzDIg

    Q7: What are some tips to help a small business normalize their cash flow? #QBOchat pic.twitter.com/XRJdhTzDIg
  114. A6 #qbochat .. . @GoVeem to save on fees, @tsheets to save on overpaying wages, @Hubdoc to save on time, @fundbox to increase cash on hand as needed (but put it back right away to keep fees down) … Saving money helps keep more of it in your bank account!
  115. A5: looking backwards helps you project forward by showing you the trends on your spend and which costs are rising #qbochat
  116. A7: Keep an eye on overdue bills and invoices, tighten up project timelines by invoicing more effectively, spend more time forecasting sales (cf drought = not enough $ in!) #qbochat
  117. @qbochat A6. For Cash flow issues related to A/R, using QuickBooks Payments and/or other apps that can help clients pay faster helps keep open A/R low. Also, teach clients to use the Invoice Tracker in qbo to see when invoice was sent, viewed, paid, deposited. #qbochat https://t.co/uY6POeiQ6F

    @QBOchat A6. For Cash flow issues related to A/R, using QuickBooks Payments and/or other apps that can help clients pay faster helps keep open A/R low. Also, teach clients to use the Invoice Tracker in qbo to see when invoice was sent, viewed, paid, deposited. #qbochat pic.twitter.com/uY6POeiQ6F
  118. A7: don’t bill by the hour. Create “subscriptions” for ongoing services, to even out the peaks and valleys. #QBOchat
  119. A6: Most small businesses hate collections duties, but I can’t stress how important this is for cash flow management #QBOchat
  120. A6 – This might come as a surprise but鈥y answer is Bento for Business. ? We help #smallbiz and nonprofits prevent employee overspending by automating card controls and budgets, and getting a monthly statement as well as real-time reports any time they want. #qbochat
  121. A5: Looking back helps a business determine the cost trends for vendors and help them renegotiate new terms and pricing. #qbochat
  122. @vheckman @QBOchat Now if only we could pay a small fee to speed up ACH QuickBooks Payments… #qbochat
  123. A7: Look at the numbers and what they tell you. Poor cash flow doesn’t happen just by chance. Cause and Effect! #qbochat
  124. Q8: What can #ProAdvisors can be doing more of to help small businesses understand and manage their cash flow? #QBOchat https://t.co/2KwukEKZuR

    Q8: What can #ProAdvisors can be doing more of to help small businesses understand and manage their cash flow? #QBOchat pic.twitter.com/2KwukEKZuR
  125. A7 – Hire an expert if you can! If not, then be organized, plan ahead, and find the leaky faucets in your business (you might be losing money in ways you don’t know…especially when you use petty cash). #qbochat
  126. @SharmanRose That’s a tough question! I think it varies, but if I can see and feel value the service, I am pretty loyal even if the service price goes up. #qbochat
  127. A8: ProAdvisors can proactively work with clients by forecasting cash flow and pointing out issues along with solutions to the cash flow issues. #QBOchat
  128. @QBOchat Gotta go grab some noms before my next meeting, but I hope everyone has a great day!If you're not yet participating in the #AccountingTop100 leaderboard and would like to, check it out here to join or send us a DM! https://t.co/AdNOE9T2NH  #QBOchat https://t.co/63it3Yhn89

    @QBOchat Gotta go grab some noms before my next meeting, but I hope everyone has a great day!

    If you’re not yet participating in the #AccountingTop100 leaderboard and would like to, check it out here to join or send us a DM!  http://avlr.co/2tO7Yo9  #QBOchat pic.twitter.com/63it3Yhn89

  129. It’s a heavy lift, but tailoring education and knowledge sharing by client, reaching them on a personal level not only for comprehension but encouragement #qbochat
  130. @SherrellTMartin @QBOchat Oh no!!!! I’m so sorry to hear that!! 馃檨 Hopefully April brings you contentment and your world is back to normal!!! #QBOchat
  131. A7: start with a budget, so you’ve got something to compare your actuals to! #qbochat
  132. What a great chat today!! Just a reminder to join “Build Your Best QBO Practice” on Facebook if you haven’t already. We are here to help you create the practice of your dreams! #QBOchat  http://bit.ly/2G5tZnp 
  133. A8: Listen to the #smb owner; look at the numbers and beyond; work with owners to determine their “why” and then set plans on how to get there. #qbochat
  134. A8: Don鈥檛 focus on the year-end 鈥渂ooty call鈥 (year-ends and tax returns). Focus on keeping clients up to date and be a part of their day to say and month to month success too #QBOchat  https://twitter.com/qbochat/status/979446751546544129 
  135. A8: Meet #smallbiz clients where they’re at in understanding. Adopt a great collaborative communication tool like @mydryrun. Don’t be hesitant to dive into sales pipeline – it’s long term rev gen and SO vital for biz success! Also free trial @ Dryrun for accting pros #qbochat
  136. A8: There are a number of ways how a #ProAdvisors can help their clients understand and manage their cash flow. My best advice would be to overview the three segments of a cash flow statement with your client. #QBOchat
  137. A8 – The No. 1 complaint #smallbiz have for their accountants is that they鈥檙e not PROACTIVE. So get your clients new solutions they might not even know they need! Sometimes the best way to educate is to make a difference in their business that they can see. #qbochat
  138. @QBOchat I have to dash to my next, learned SO much creeping todays chat. Thanks!! #qbochat
  139. A8: educate and advising them; helping them craft the a solution and implementing it #qbochat
  140. That’s it for this week’s #QBOChat, thanks for taking the time to tweet with us!
  141. Next week’s topic is: Increasing Profits by Reducing Expenses. Schedule it on your calendar now! #QBOchat
  142. Remember to sign up for our newsletter to get the most up-to-date news on #QuickBooks and #QBOchat.  http://bit.ly/2nJVXIC 

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#QBOchat began in July 2013 with the simple idea to host a weekly Twitter conversation around QuickBooks Online (QBO). We have since grown into a very strong community comprised of a diverse group of users. Our weekly tweet chat is held each Thursday at 3:00PM Eastern. The discussions cover a wide range of topics including QBO鈥檚 latest features and updates, business operation tips and apps that integrate with QBO, to name just a few.

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