For more than two decades, Roger Stadtmueller has been working as a CPA in Washington. Serving as a managing partner at Stadtmueller & Associates, PS, in Spokane, he manages office staff and oversees quality control. Roger Stadtmueller and his company provide a wide range of services to individuals and businesses, including tax preparation and cash flow management.
Cash flow plays an important role in a business’ overall success, but it can be a challenge to improve. When starting the improvement process, companies must set aside time to figure out where their cash is going and where it will go in the future.
Take the time to divide cash flow into inventory, customers, and suppliers. Creating these segments helps businesses stay organization through the improvement process. By making a clear list of cash flow activities, companies get a better idea of where the problem is and what they need to change.
Once a business knows where its money is going, it can make changes. Early-stage businesses may want to lease various supplies and equipment while they are growing. This gives them the opportunity to pay smaller amounts towards supplies and redirect the extra money back into the company’s operations.
Meanwhile, companies with large differences between their average payables and receivables may want to alter their payment terms with customers to ensure money is received faster. They can also offer incentives for fast and early payments customers make.
