Plan For Your Business’ Future with Superior Cash Flow Plan Analysis
Everyone has goals in life, and the same goes for your business. However, not everyone knows that one of the keys to making your plans a successful reality is conducting an expert cash flow analysis.
For a healthy and sustainable business, you need to have a good understanding of both your company’s current cash flow and what you want it to look like in the future. Your cash flow plan is not only crucial to maintaining a strong business but to also reaching financial goals or other plans.
Businesses in the Rio Grande Valley have a lot on their plate as it is, so it can be difficult to effectively plan out what you want to see. Thankfully, Abigail Y. Murray, CPA, LLC, in McAllen has the capabilities of a CPA and vCFO, and can step in to help make your plans a reality!
What Exactly Is Cash Flow?
Before we can discuss cash flow plans, let’s clearly define what cash flow is, since it’s critical to the entire picture.
Cash flow is how much money is coming and going from your business, and is calculated through analysis of costs versus revenues. There are two basic types of cash flow:
- Positive Cash Flow – Shows a healthy business as there is more money coming in than going out.
- Negative Cash Flow – Indicates a problem because more money is lost than gained overall.
Cash flow plans then take this concept and use predictions based on expected profits and expenses. These reports then let companies plan out a strategy to reach their intended goals.
With a vCFO or certified public accountant, you can put this task entirely in their hands, which means you can request quarterly, monthly, or even weekly reports.
Better Your Business Plan With Cash Flow Analysis
Now that you fully understand what cash flow is and what cash flow plans are, we can discuss exactly how good cash flow planning can strengthen your business.
Here are just a few of the advantages of creating and utilizing a strategic cash flow plan:
- compare and contrast income and expenses across different periods
- predict and plan for either cash shortages, surpluses, or general financial fluctuations
- notice, analyze, and act on trends in the marketplace
- determine how an investment or cost may impact the company
- see if you need to cut costs in certain areas
While these are some of the most recognized benefits, there are many reasons for a business to create and work off a cash flow plan. However, not every business has the time to do so effectively, which is where a skilled vCFO or CPA can assist!
Strategize With the McAllen CPA and vCFO at Abigail Y. Murray, CPA, LLC
We hope you now see the importance of a well-made cash flow plan and how it can benefit your business. The team at Abigail Y. Murray, CPA, LLC, is ready to help you make your plans a success with the help of a McAllen CPA or vCFO!
Cash flow analysis may be a confusing subject, but it’s critical to improve your business plan and optimize future opportunities. Abigail Y. Murray, CPA, LLC, and our team of CPAs and virtual chief financial officers in McAllen can help with key analysis – so call now!
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