Submitted by Bryan Eto, CPA, BeachFleischmancash-flow-crunch

How to determine your financial health

Cash flow is always an important element in the smooth and successful operation of your construction business and is 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 ensuring that that cash from those sales is collected and that your company’s daily cash flow needs are managed efficiently and effectively is even more important.

And this is particularly true when the economy goes into a slump. Your business’s resources can be stretched to the max and 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!

Use this checklist

As one step in that planning, it’s wise to diagnose your company’s cash flow health and 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-questionnaire

Cash flow is always an important element in the smooth and successful operation of your business and is particularly key in meeting opportunities and demands.

Generating sales and managing operations are, of course, also important, but ensuring that that cash from those sales is collected and that your company’s daily cash flow needs are managed efficiently and effectively is even more important. And this is particularly true when the economy goes into a slump. Your business’s resources can be stretched to the max and 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 and 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.

 

Beach Fleischman 2201 E. Camelback Rd. Phoenix, AZ 85016 602.265.7011 | http://beachfleischman.com | twitter: @BeachFleischman

 

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