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In a recent interview Thomas J. McAllister, founder of Thomas J. McAllister, PC in Denver, CO, was asked to reveal how accountants can help small businesses increase cash flow.For more information please visit http://thomasjmcalister.com
When asked to comment, McAlister said, “One of the most common problems that small business owners face is maintaining a steady stream of cash flow at one point or another. Accountants can help smaller enterprises overcome this by snatching a bigger market share.”
When taking on a client, McAlister said, one essential service accountants offer small enterprises is drafting a cash flow forecast.
“A cash flow forecast is one of the best indicators in showing which areas of a business are in danger of decreased or stalled cash flow presently or in the future. This information can help accountants steer small business owners in the direction of improving cash flow,” McAlister said.
One way that accountants can do this, according to McAllister, is through creating an action plan outline steps that clients can take to make better financial decisions about their company.
Business owners can take action, McAlister says, to increase cash flow is to restructure how suppliers are paid.
When asked about the benefits of this, he commented, “Accountants can help small business owners pay suppliers strategically. Many small business owners take out a credit line in order to pay their suppliers immediately, even though this hurts cash flow.”
McAlister added that waiting to pay a supplier within the 60-90-day time period generally allotted by suppliers could help small enterprises collect on receivables before making a payment.
“In some cases, suppliers will offer an incentive to pay early. Depending on the amount of the invoice and the incentive itself, it might be more beneficial to pay everything up front. An accountant can crunch these numbers and give you the best possible advice in moving forward,” he commented.
Another way that accountants help clients improve cash flow is through consulting on how to price products.
"Small business owners have to continually reprice their products and services based on market conditions, but they might be reluctant to do so in order to remain competitive and retain customers," he said.
McAlister added that accountants can advise small business owners on how to implement steady price hikes that will meet customer expectations.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Thomas Mcalister
Email: Send Email
Organization: Thomas J Mcalister P.C.
Address: 4704 N Harlan St #675, Denver, CO 80212, USA
Phone: 303-279-1450
Website: http://thomasjmcalister.com
Source URL: http://RecommendedExperts.biz
Release ID: 355488
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