Evergreen Small Business

The right accounting practices can help your small business keep more of what you earn. This blog, We wrote it , covers topics ranging from whether you should pay taxes as an to why you should raise your prices for inflation. It’ll give you some good talking points for your next conversation with your own accountant.

While market conditions can change over time, one thing remains true for every company: Cash is essential. Without proper cash flow optimization, businesses can be profitable on paper and yet still be at risk of bankruptcy if they can’t pay their bills.

Small and medium businesses are especially prone to irregular cash flows and limited liquidity, making it crucial to pay close attention to working capital and set processes in place to manage it before challenges—such as a pandemic—arise.

Your first steps towards leadership

A better first step is to create a structured approach to cash flow management and make sure it’s fully optimized. This will not only provide sufficient liquidity to sustain operations and fund growth during the good times but will also add a layer of stability during difficult times—while eliminating or reducing the need for additional financing.

A structured approach rests on three key pillars:

1-Implement best practices for working capital management.

2-Create a cash flow forecast and establish a discipline for review. 

3-Engage in scenario planning and prepare for both challenges and windfalls.