Cash Flow Budget Analysis

Do you struggle with having the cash to cover your expenses even though your business is profitable? Do you lay awake at night, wondering if you have enough cash to make payroll? Do you wonder whether you should buy equipment with cash or with financing?

Your cash flow statement can answer a lot of these questions, but like many companies, you may not be building and utilizing this information correctly. Through our comprehensive cash flow analysis, we will build a cash flow statement and projection and then help you use that data to make sure your cash flow is working for you, not against you.

Importance of Understanding Your Cash Flow

Depending on your business, you might have a large lead-time between completing a job and receiving payment. This is a common problem that leaves many companies short on the cash needed to cover business expenses.

By building a cash flow statement, you will see how your money flows in and out of your business through operating, investing, and financing activities.

Once you gain an understanding of your cash inflows and outflows you gain piece of mind about your company’s financial health, and you are confident that you are effectively using cash in a way that is aligned with your business and personal goals. To help you get started, we will show you how to conduct regular cash flow analyses, as well as how to forecast your cash flow to proactively mitigate cash flow gaps.

Methods of Cash Flow Analysis

Cash Flow Statements

 The first step in optimizing your cash flow is to create an accurate cash flow statement. This statement will accurately account for all cash receipts and paid expenses during a given period, including how much is paid or received, from whom, and when.

Cash Flow Projections

An additional step is to create a cash flow projection, also known as a cash flow budget. We do this by looking at your company’s current backlog and cost structure to forecast your cash inflows and outflows over a given period. We will also discuss with you, your business and personal goals to identify what your financial priorities are.

After building your cash flow statement and projection, we can predict when your cash flow will be positive and negative. We then look for areas to improve your cash position and discuss methods to avoid a shortage in cash flow.

Creating cash flow statements and projections can be confusing, especially if you haven’t managed these types of complex statements before. It is also difficult to balance your personal cash flow needs, with the cash flow needs of your business. For easy-to-follow tips on how to manage your cash flow more efficiently, get in touch with us.

Cash Flow Consultation

Looking for assistance with your cash flow and budget? Barrett & Company wants to help you in the areas that you need the most. You’ve got a business to run, leave the numbers to us.

4910 NW Camas Meadows Drive, Suite 100 | Camas, WA 98607 360.210.5100 | 503.253.5902
Barrett & Co provides custom CPA services, tax planning and business advisory services to Clark County and the Greater Portland Metropolitan area.

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