Should You File Your Own Taxes?

August 30, 2019

It might seem counterintuitive, but there are things more important to a business than profit. Ask any account service in Los Angeles; there are many companies that have filed for bankruptcy while reporting high profits. The reason? Poor cash flow.

Keep It Pumping

Like blood flowing through your veins, excellent cash flow is indicative of a healthy business. It not only lets you make payments and keep contracts viable, but it shows investors that you know how to run your company.

It’s not that profits aren’t important, it’s simply that having cash on hand and enhanced liquidity, your business is in a position to reinvest in its own growth. Keeping your Los Angeles accounting practices efficient means you’ve got the necessary tools to continue expansion, which will bear fruits via profit down the line.

Work to Improve

The main way to develop cash flow is to work with your clients directly, helping them help your business succeed. This means looking at invoicing and payments like a professional Encino accountant does:

• Try and avoid invoicing if you can, as this leads to chasing down payments. Direct monthly withdrawals for continuing customers will ensure a regular schedule.

• If you have to invoice, offer benefits to customers who pay fast. Discounts on current bills or savings on future sales.

• If you offer credit programs, make sure you do an in-depth check of their finances. Only approve for well-established clients so you can be sure they will continue to build their credit with you.

• Look for wasteful accounting practices and places where improved technology can help create more efficiency in your cash flow.

When it comes to improving your business, the adage that “cash is king” truly takes hold. Look to a reputable accountant service in Los Angeles to help you get your cash flow on track, making your business growth strategy more effective than you’ve ever thought possible!