I spent several years working for an insolvency practitioner before joining Dodd & Co as a dental accountant.
Lack of sales, demand for services or being outdone by competitors are rarely the reasons that businesses find themselves in financial difficulty. Sadly, many find that the simple reason is that they have ran out of cash and can no longer afford to meet their debts as they fall due. It is a stressful position to be in and one that I want you to be able to avoid.
On paper this can happen to a profitable business that finds their cash tied up in outstanding debtor balances, buying materials in large quantities which results in high stock holdings, paying suppliers faster than necessary under credit terms or buying significant equipment assets with cash up front.
If you feel that you are constantly checking your online bank balance or utilising an overdraft facility, then a cash management review together with a business cash flow projection is a fantastic place to start. Cloud and bespoke cash flow projection software is available that can be regularly tweaked so that you can foresee what your likely cash balances will be. These cash flow tools are also useful if you want to plan around the potential impact of say employee wage increases or taking out loans to finance refurbishments or new assets.
So why is cash king? Without cash the cogs of your business can grind to a halt. I want to help keep all the wheels in motion so that you can concentrate on what you are passionate about - treating patients!
Please contact me if you would like to discuss cash management or cash flow projections.
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