Total Cash Clarity

Are Your Cash Flow Requirements Ready for 1st Quarter 2018?

There is no reason business owners should be surprised with how much they will need to pay in taxes in 2018 for 2017. Do you know approximately what your tax liabilities will be and how this will affect your 1st quarter in 2018? Now is the time to ask your CPA to project/calculate your 2017 tax liabilities. Remember, your Net Profits (or Losses) flow through to your personal tax return. Also, ask your CPA if any portion of your liabilities have to be paid in January to avoid any penalties. Or can you just pay when you file your tax return in April?

From a cash flow perspective, once you know this information, you can plan for how much cash reserves you need to set aside to take care of your tax liabilities without experiencing a cash flow storm.

Know Your Numbers

One of the most important key figures in working out Cash Flow projections in your business, is your beginning/ ending cash balance on hand. The ending cash balance is the total amount of cash you have on your balance sheet once you’ve closed your books for the month and all your outstanding checks clear the bank.

So how much cash should you have on hand every month to avoid a squeeze on your cash flow? Should it be two times your monthly payroll amount? Or maybe three times your monthly expenses? The answer is different for every business, and you need to know what that balance should be on a monthly basis to give you good Cash Flow results.

Dirty Little Secret

One of my Dirty Little Secrets is that you should know your CASH OUTLAY amount each month.  This is different than total expenses.  My Cash Flow forecasting system provides an 8-month projection of beginning/ ending cash on hand balances based on a 4-month trend of the business financials.  My system identifies what the average monthly Outlay of Cash is against the average Revenue trend.  It identifies the truth of what your financial story is and provides the integrity to projecting future cash requirements!

Start the Year off Right

Taxes are always a challenge for a business owner. The more profitable you are, the more you will probably owe in taxes. Planning for taxes now can help you create proactive strategies to start your new year off and will lead to peace of mind. That means less sleepless nights worrying about your finances. In my cash flow forecasting and modeling system, my clients are already prepped and ready for what cash requirements they will need to avoid a cash flow problem in the first quarter.

An exciting new way to start the year of right is coming soon! I am creating a custom cash flow forecasting app to allow users to take control of their cash flow by uploading their own information to gain immediate insights.  Users will be provided an 8 month view into the future of what cash requirements will look like! The product is scheduled to launch 1st quarter 2018!

Save the Date!

Head into 2018 empowered with indispensable information by coming to my in-person seminar on “Why Net Profits Don’t Always Equal Good Cash Flow.

Location: Peebles Dental Lab at 909 Wadsworth Blvd. Lakewood, CO 80214.
Date: January 25th, 2018
6:00 – 6:30 Complimentary Dinner
6:30 – 8:00 is Presentation
Registration Contact:  Audra Ross at or call 303.462.3744=