Managing Business Cash-Flow with Alison Reiff-Martin CPA
- 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.
| **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 |
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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.
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