On this episode of Fortnight Cash Flow, David talks with DryRun's Jeremy Burke discussing simple cash flow optimization techniques that you can implement in your own business. 

Are there any accountants out there that would like to convince me that accrual accounting is better for a small business than cash accounting?

I'm talking about having a discussion, not an argument. An exchange of ideas and open minds. We can have a civil chat and explain to each other why we think our idea is better.

I believe that cash accounting is the only way to go for small businesses unless accrual accounting is required for a bank loan.

How small a business?

Let's start at the $25,000,000 mark. That the IRS limit established in 2018 before you need to do accrual accounting for tax purposes.

I am guessing that there are a few accountants out there that disagree with this position!

Are you interested in having the conversation?

Please let me know in the comments!

#accounting #wtcfg #bookkeeping

When you are looking to fix your cash management issues, don’t just look at the symptom. If you don’t dig past the symptoms you are seeing at the surface of a problem, you probably don’t know what your real problem is.

Most of the time when I am asked to come in and resolve issues, I am asked to fix the symptoms of a business’s troubles.

• “I need good job descriptions, so the business runs smoother.”
• “Help me get a loan so I have more capital.”
• “I have a lot of profits. Help me find more cash.”
• “Would you be my part-time CFO, so I can get my finances organized and we can grow again?”

People don’t realize that the symptoms they see and keep them awake at night, are not the real issues that need to be fixed. They try to get rid of the immediate pain and often try short-cuts that do more harm than good.

When I was Leaking Water instead of Cash

Let me tell you a quick story that will give you a better idea...