How to determine your financial health
Cash flow is always an important element in the smooth and successful operation of your construction business. It’s particularly key in meeting opportunities and demands. Ask yourself is your construction company in a cash flow crunch?
Generating sales and managing operations are, of course, also important. But more important is ensuring that cash from those sales is collected. As well as ensuring your company’s daily cash flow needs are managed efficiently and effectively.
And this is particularly true when the economy goes into a slump. Your business’s resources can be stretched to the max. You may find yourself scrambling to keep up with your own accounts payable. Not to mention account receivables.
Proper planning is paramount to be able to better avoid a serious cash crunch in the future!
Use this checklist
As one step in that planning, it’s wise to diagnose your company’s cash flow health. Ferret out any weaknesses that could create problems down the line. To that end, here is a checklist to help you get a picture of just how healthy your cash flow is.
Cash flow is always an important element in the smooth and successful operation of your business. It is particularly key in meeting opportunities and demands.
Generating sales and managing operations are, of course, also important. However, ensuring that cash from those sales is collected is even more important. Additionally, your company’s daily cash flow needs must be managed efficiently and effectively. This is particularly true when the economy goes into a slump. Your business’s resources can be stretched to the max. You may find yourself scrambling to keep up with your own accounts payable, let alone worrying about your receivables.
Proper planning is paramount to be able to better avoid a serious cash crunch in the future!
As one step in that planning, it’s wise to diagnose your company’s cash flow health. Ferret out any weaknesses that could create problems down the line. To that end, here is a checklist to help you get a picture of just how healthy your cash flow is.
ETHOSystems is a multi-award-winning provider of integrated business software solutions. We offer support for Sage Construction and Real Estate industries. We focus on key areas such as Accounting, Project Management, Estimating, Construction Management, and Payroll. With over 35 years of hands-on experience we place a strong emphasis on recommending, implementing, and supporting solutions. These efforts help our clients succeed.
At ETHOSystems, our goal is to set up the best systems, in the best way, to ensure long-term success for every client we serve.
Beach Fleischman 2201 E. Camelback Rd. Phoenix, AZ 85016 602.265.7011 | http://beachfleischman.com | twitter: @BeachFleischman
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Submitted by Bryan Eto, CPA, BeachFleischman