If you're a fractional CFO, CPA, financial planner, or business coach, you already know that your clients come to you when things feel out of control. Cash is tight, the P&L doesn't tell the whole story, and the business owner is oscillating between relief and panic from week to week.

Here's the uncomfortable truth: most financial advisors are stuck at level one of cash flow advisory, and they don't even know there are two more levels above it. Each level adds more value dramatically to your clients and, frankly, makes you dramatically harder to replace.

Let me walk you through all three.

Before We Begin: The Preliminary Step Nobody Talks About

There's actually a step that comes before cash flow advisory work begins, and it's what most accountants and bookkeepers spend the most time on: reporting. Bookkeeping, financial statements, and tax preparation. It's essential work, and doing it well matters. But it looks backward, not forward. It tells you where a company has been, not wher...

If you didn’t have a cash flow management model before, what are you waiting for?

Or do you still think you can actually manage your company with a P&L, balance sheet, and statement of cash flows? If you believe the best way to run a company is with backward-looking, historical documents, then you probably also think that the safest way to drive a car is through your rearview mirror!

History- yes, you can learn from it, and not repeat your mistakes, but it can’t tell you what’s coming down the road!

Cash Flow Management: Look forward!

What’s coming in?!

What sales are being made?!

Who owes you money that needs a reminder call?!

What are expenses today, next week, and next month?!

What will your bank balance be after you run payroll?!

Some people are saying, “But David, it’s too late!” It’s never too late to put good business practices into place unless you’re giving up without even trying.

Am I being too harsh? Maybe.

But sometimes it takes a wake-up call to take action. Sometimes it takes some...

We need to be prepared for business loan delinquencies.

Special Asset departments of banks have been busy. Really busy. The Special Asset department of a bank is the group of people who work with problem loans. If you need to work with them, they will decide:

• If your loan is called early
• Terms get extended
• Credit lines are reduced
• How to work out getting refinanced

The Special Asset employee at the bank can become your best friend or a challenge to work with, depending on how you deal with them.

They want information.

They want explanations.

They want realistic forecasts.

They want action plans.

They want you to succeed so the loan is paid off.

How do they know that they'll get payments? The basic tool that is used is a 13-week cash flow model.

Solid, realistic sales forecast.
Expenses under control.
Planned payments to vendors.

I'd love to be connected to special asset managers. Please, introduce me if you know any.

E-mail me at david@davidsafeer.com