Cash Flow Management

Cash Flow Management


Our Accountants Help Phoenix Businesses Better Manage Cash Flow


Consistency of cash flow isn’t necessarily the defining factor of a successful and stable business. Some businesses, like an insurance agency or any business-to-business service provider with stable monthly contracts, gets paid roughly the same amount each month. Doctors may be similar in that local residents use them with about the same frequency all year. 

Others, like HVAC companies or retail businesses, might experience significant changes in seasonal demand. Phoenix air conditioning repair companies may see a drastic decrease in calls during the fall when most families have their windows open. People might use their furnace sometimes, but other than December and January there’s not a whole lot of need for heating. Specialty retailers might see similarly inconsistent demand, like stores that sell skiing and snowboarding equipment. 

Those types of seasonal businesses must carefully manage their expenses and budget for predictable drops in cashflow. Failing to do so can be disastrous for workers who get laid off and the threaten the stability of the business as a whole.

Some common problems businesses have with cash flow are related to failing to:
  • Regularly monitor cash flow
  • Budget for seasonal lows
  • Set aside cash for unexpected expenses (like replacing fleet vehicles or equipment)
  • Use accounting software and other financial tools to monitor cash flow
  • Optimize account receivables
  • Properly manage inventory
  • Accurately forecast cash flow
  • Take advantage of all available tax deductions
  • Use all available financing options

The team at H&H Accounting Services is familiar with the cash flow pitfalls businesses often experience and know how to help you navigate these challenges.



Ways your business may be able to persevere during periods of low cash flow include:

Drastically cutting expenses: This can unfortunately mean laying off workers. Seasonal businesses avoid the awkward and unpleasant aspects of layoffs by specifically hiring seasonal workers who don’t expect to keep their job beyond the busy season. There are many other ways a business with inconsistent cashflow can manage expenses, like reducing inventory or renegotiating contracts. Our team can help your business identify ways in which you can reduce your expenses without throwing in the towel. 


Finding new revenue streams: Cutting expenses isn’t necessarily the only solution to cashflow problems. The other obvious alternative is to restore cash flow via means other than your traditional business offerings. Expand your inventory, add new services or expand to a new market. For example, a ski and snowboard shop could start selling skateboarding equipment or an HVAC company can expand into plumbing.


Get financing: There are scenarios, like the pandemic, where the core fundamentals of your business are still sound and factors beyond your control have subjected your business to cashflow woes. Loans can help you survive these dry periods. We excel at helping business owners prepare loan applications or take the necessary reporting steps (compilations, forecasts, business plans, etc.) to pursue funding opportunities.


Better manage accounts receivable: If you generally aren’t fastidious with your accounts receivables, cashflow problems may force you to change your ways. Net 90 businesses may need to consider changing their terms so there’s less of a delay, or you may just need to speak to vendors or customers about working out a temporary change in your contract so you can continue working with them. In many cases business partners would rather help you survive by accommodating your needs rather than losing you as a client or service provider. We can help you reach out to your partners and negotiate through these sometimes awkward and difficult situations.

Your Business Success and Stability Is Our Top Priority

One of the benefits of working with an accounting firm like ours is we have a direct interest in solving your problems. If we fail to help you correct your cashflow deficiencies, we might not get paid, so you can trust us to think outside the box and consider all the alternatives when seeking out solutions to stabilize your cash flow and ensure your continued success.

We look forward to working together on finding ways to stabilize your cashflow or help you weather periods of low cashflow. Schedule a free one-hour meeting to discuss your situation with our Phoenix business CPA by calling (480) 561-5805.



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