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.
Real Estate: The math around buying and selling AirBNBs
Wealth Mindset: ”Am I letting my family down because I can’t provide them the lifestyle they want right now?”
Financial Planning: ”How much money should I put in my emergency fund?”
Business: A Brief Study of the History of Smoothie King
Innovation: Artificial Intelligence and Web 3.0 will open up more career opportunities
Investing: Is a 401(k) a good source of financial security?
Wealth Mindset: Giving out of desire instead of obligation
Business: Apple, Inc. in the Tim Cook Era
Innovation: Making money growing vegetables in your home
Real Estate: Real estate as a currency alternative
Investing: How Money Thinks
Investing: The History of Currencies
Business: The Maturity and Decline Phase of Apple, Inc.
Innovation: Renewable energy in the future of manufacturing
Real Estate: The Gift and the Curse of Gentrification
Wealth Mindset: How to change your relationship with money
Investing: The basic building blocks of an economy
Business: The Growth Phase of Apple, Inc.
Innovation: A Deep Dive into 3D Printing
Real Estate: ”Interest rate hikes” for home buyers with good credit
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