Salt Lake City Bookkeeping Blog

Accepting credit card payments allows your business to benefit in a number of ways. To begin with, getting paid by credit card means getting paid faster than is possible with just an accounts receivable or check payment system. Charge cards also give your business the ability to set up automatic client payments, and they provide a more convenient customer experience overall.

The process of reducing business assets or selling off all or part of your company is known as divestment or divestiture. Business divestment effectively downsizes or eliminates your interest in your company and the property it owns.

Maintaining a positive short-term cash flow position – one where the revenues from selling your product or service are greater than your expenses for things like rent, salaries, and supplies - is critical if you want your company to succeed.

Carrying out a liquidity analysis of your business will help you to better understand your cash position. And that’s important. Because the more favorable a cash position you maintain, the better your outlook for continued success.

If you intend to grow a successful business, you will most likely have to hire employees at some point. This is not to say that you can't have a successful business without employees, but you will definitely reach the limit of what you can handle by yourself.

Determining operating business cash flow helps you distinguish how much money your business makes from customers and operating activities, such as selling products and services, from money made from financing or investing. Calculating your operating business cash flow helps you manage your money and ensures you have enough funds from customers to cover operating expenses and costs.

Money owing from customers in the form of accounts receivable is one of the biggest contributors to your company’s cash flow. While business success hinges on having positive cash flow activity - where there’s more money coming in than there is going out - the money that flows into your business can’t really be counted as income until it becomes cash-in-hand.

Properly managing your small business cash flow is critical if you want to succeed. Even if you are just a startup with no revenues, but you have raised money, cash flow is still incredibly important.

An inability to manage cash flow can kill a small business. One of the biggest reasons for small business failure is a lack of cash flow management. 

From a financial perspective, I would say that the number one issue for small businesses is having access to accurate financial information when they need it. Many new prospects tell us that they don't feel as though their financial reporting is accurate and they don't look at reports often enough. So how do you get accurate financial reports for your small business in a timely manner?