Key Takeaways:
- Tracking cash flow is crucial for business owners to ensure they have enough money to cover costs and make informed financial decisions.
- Cash flow can be categorized into operational cash, investment cash, and financing cash.
- Operational cash should ideally be positive, indicating that the business is generating enough revenue to cover expenses.
- A 13-week cash flow projection is a valuable tool for planning and ensuring the availability of operational cash.
- It is important to have a minimum of three months of operational cash on hand to handle emergencies and unexpected expenses.
Chapters
| **Timestamp** | **Summary** |
| ------------- | ----------- |
| 0:00:01 | Introduction to the podcast episode on managing cash flow |
| 0:01:09 | Importance of tracking cash flow and ensuring it covers costs |
| 0:02:28 | Negative operational cash flow indicates business trouble |
| 0:03:24 | Options for improving operational cash flow: cutting expenses or increasing revenue |
| 0:04:26 | The need to regularly review cash flow statements |
| 0:04:52 | Importance of projecting cash flow with a 13-week cash flow projection |
| 0:06:28 | Clarification on cash flow categories: operational, investment, and financing |
| 0:07:33 | The significance of having three months of operational cash on hand |
| 0:08:53 | Using the cash flow statement to determine if the business is making money |
| 0:09:15 | Contact information for assistance with cash flow statements |
Powered by ReiffMartin CPA and Stone Hill Wealth Management
www.reiffmartincpa.com
stonehillwealthmanagement.com
Join the Wealth Building Made Simple Newsletter:
wealthbuildingmadesimple.us
Social Media Handles
Follow Philip Washington, Jr. on Instagram (@askphillip)
Subscribe to Wealth Building Made Simple newsletter (https://wealthbuildingmadesimple.us/subscribe/)
Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Baby Boomers' $7.9 Trillion Worth of Businesses
The Future of AI: Embrace Change and Unlock Infinite Potential
Understanding Real Interest Rates and Their Impact on Investments
ESOP: A Powerful Strategy for Business Owners to Sell and Retain Talent
Understanding the Real Economy
WBMS Docuseries: Healthy Mind, Body, and Spirit (Episode 1)
New Retirement Opportunities and Tax Benefits Under the Secure Act 2.0
Improving the Value of Your Balance Sheet
Preserving Purchasing Power in Changing Economy
Understanding Beneficial Ownership Reporting
The Importance of Exit Strategies
Buying and Selling Businesses
The Benefits of Regularly Reviewing Your Financial and Estate Plan
Lessons on Business Planning and Exit Strategies
Understanding the Factors that Affect the Value of Your Business
Maximizing Tax Savings with Depreciation and Credits for Businesses
A Guide to Due Diligence and Risk Assessment
Understanding the Abundance of Wealth
Tips for Checking Your Paycheck in 2024
The Path to Wealth Building and Market Success
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Aligned Money Show
Dubai Property Podcast
IBKR Podcasts
The Ramsey Show
The Clark Howard Podcast