Just because you own a business, it doesn't necessarily mean you are a financial pro
Bohemia, NY (PRWEB) September 26, 2013
Lawrence Teicher, founder of CFO Consulting Services, comments on an article published by Fox Business on September 12th, which discusses four tips on how business owners can accurately forecast cash flow.
According to the Fox Business article titled “4 Tips for Accurate Cash Flow Forecasting,” cash flow forecasting is an extremely important aspect of owning a business. The article says predicting cash flow helps businesses get a clearer view as to what they can expect to earn in annual profits compared to any outstanding year- end debt. It is also necessary for assisting CFOs and small business executives plan financial goals for the following year.
The article lists 4 factors that should be discussed when forecasting cash flow for the year:
- How much money will the company bring in
- The terms under which clients make payments
- Amount of money the company will spend
- Combine the numbers
Lawrence Teicher, founder of CFO Consulting Services, a leading Long Island CPA firm, says predicting cash flow is one of the most important things a small business owner can do to ensure its success and a balanced budget. However, he also says many business owners fail to do this accurately. “Just because you own a business, it doesn't necessarily mean you are a financial pro,” he says. “Many business owners fail to ask themselves certain questions that can help them predict how much cash flow they are generating. It’s critical that business owners know their numbers. How much will the company make, how much will it spend, and how is it getting paid? Even profitable and growing companies experience cash flow problems due to increasing receivables and inventories. When you really study your business and know the numbers, you can accurately predict how much cash you will have.”
Teicher says hiring a part time CFO to help calculate cash flow can help businesses make smarter financial decisions. “When you have an accurate prediction of cash flow for that year, businesses are able to make better decisions on where they are spending money,” he says. “Hiring a part-time CFO can make it easier on business owners.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.