Episode 8 – Helping Your Clients Navigate Cash Flow

Helping Your Clients Navigate Cash Flow

Cash flow issues are one of the biggest concerns that our clients can have. Navigating that can be difficult. In this episode, I cover the different areas that we need to be concerned about when reviewing a client’s cash flow. Plus there are tons of tips on helping you and your clients manage cash flow for their business.

Show Notes

Overall Tips

  • Keep a cash reserve
  • Have access to a line of credit or available credit on credit cards
  • Create a process to track your cash flow depending on the granularity the business needs – daily, weekly, monthly
  • Budget future expenses way in advance so you can plan
  • Know your balances – checking, savings, credit cards, loans, accounts receivable, accounts payable, inventory -> the balance sheet
  • Understand how changes in balance will impact your cash – ROI
  • Understand the Cashflow Statement
    • Money gained or used in operations
    • Money gained or used in investing
    • Money gained or used in financing
    • Overall monthly money generated or lost

Cash In

  • Gain consistency in getting paid -> consistent invoicing timeline, consistent reminders, a streamlined collections process & knowing when to stop work
  • Look at ways to get paid faster -> early pay discounts, deposits
  • Get paid in advance
  • Be careful who you give credit to
  • Consistently work to improve your sales & marketing process to increase your conversion rate

Cash Out

  • Extend paying bills as long as possible
  • Cut unnecessary expenses
  • Hold off on expenses
  • Find cheaper ways to do things – automation, cut unnecessary tasks, etc
  • Try to minimize the amount you hold on to inventory – cutting carrying costs
  • Repair equipment instead of replacing it


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Cathy Iconis

Cathy Iconis, CPA is the creator and facilitator of the weekly tweetchat #QBOchat and the website QBOchat.com - a community for QuickBooks Online Users. She is also the founder of Iconis Group, an Intuit Top 20 Firm of the Future, that supports small businesses all over the United States with their bookkeeping needs. She is a five-time recipient of the prestigious CPA Practice Advisor 40 Under 40 Award, given annually to just 40 people nationwide.

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