A new ebook helps accountants help their business clients understand and take advantage of opportunities to improve cash flow.
The Definitive Guide to Improving Cash Flow, which was produced by Sageworks and is free to download, focuses on three major subjects and includes chapters that cover how to:
- Identify Opportunities for Cash Flow Improvement
- Seize Cash Flow Opportunities
- Leverage Technology to Improve Cash Flow
Additionally, the eBook concludes with a one-page practice aid that briefly summarizes and includes quick tips on how to “Avoid Cash Flow Catastrophes.” Shared with clients, the aid will provide actionable advice that demonstrates the value accountants can provide.
In the book’s introduction, Sageworks Research Specialist Mary Ellen Biery reviews the importance to business owners of understanding cash flow. She notes, “A recent study found that the median small business has an average of only $7 more in daily cash inflow that it has in daily cash outflow. This thin line of liquidity illustrates the opportunity for businesses to take steps to improve cash flow. As cash flow improves, the owner has the ability to invest in the products, the employees or other growth drivers of the business.” Additionally, she notes that the Small Business Administration has identified insufficient or delayed financing as the second most common reason for business failure.
The first chapter, “Identify Opportunities for Cash Flow Improvement,” recommends that accounting firms begin with an assessment of how cash flow improvement can advance day-to-day or long-term goals of their client and his or her business. In the next chapter, Sageworks provides a roadmap for uncovering advisory engagements that generate additional cash for business clients by focusing on the key drivers of cash flow. The final chapter provides an overview of technology that helps create and accelerate cash flow, from smartphone-enabled credit card readers to business intelligence software.
To download the free e-book, visit The Definitive Guide to Improving Cash Flow.
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Tags: Advisory, Small Business, Technology
