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.
Replay: How to deal with people acting funny as your wealth grows
Wealth Mindset: The Universal Algorithm of Money (and Life)
Business: Insights from studying Apple Computer as a start up
Innovation: The future of manufacturing
Investing: Deflation trends towards abundance
Investing: Why banks keep failing in this environment
Investing: Buying Louis Vuitton as a bet on NFTs
Business: Embracing technology in your business
Investing: Emotional Intelligence is really all you need in investing
Real Estate: Building your real estate empire in the new world
Media: The intersection of NFTs and podcasting
Investing: Inflation is good for the future, not so much for the past
Business: Using ChatGPT in accounting
Finance 101: The nuts and bolts of how our economic system is financed
Real Estate: Turning homes into NFTs on the blockchain
Media: The economics of podcasting
Investing: The Lost Decades and what to do about the one around the corner
Business: How property and casualty losses affect the bottom line of a business
Wealth Mindset: Don’t chase the desires of your heart...Attracting them feels much easier
Real Estate: China, Russia, and OPEC’s impact on the Texas Real Estate Market
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