Show notes
This week on Building the Premier Accounting Firm, Roger Knecht interviews cash flow expert David Safeer, Founder and CEO of David Safeer International, an institution that trains accountants on matters of cash flow, and also works with CFOs to optimize their cash flow strategies and run businesses more effectively. In this episode, Roger and David deep dive into the most common errors business owners make when managing their cash flow and explore strategies for improving a business' longevity. They talk about all matters cash flow; managing cash flow, cash flow strategies etc., the reasons why most businesses fail and how as an accountant you can predict the future and help businesses deal with cash effectively. Key Highlights: The Underestimated Importance of Cash Flow: David notes that many businesses that appear successful on paper face severe challenges due to poor cash flow management. David has identified 215 unique methods to improve cash flow, critiquing common, often unrealistic strategies offered online. Frequent Monitoring: David advocates for weekly cash flow reviews instead of monthly or quarterly, due to fluctuating revenue and expenses. Emotional Impact: Roger and David discuss how poor cash flow management leads to significant emotional stress for business owners, illustrated by a client's struggle with overlapping payment schedules. They explore strategies for stability include planning payments, negotiating vendor terms, and maintaining a reserve account. Cash Flow vs. Profit: David disputes the notion that "cash is king," highlighting that many prioritize profit over cash flow, leading to misconceptions about financial health. Roger criticizes media focus on earnings over cash flow, using Tesla as an example. Tailored Financial Strategies: Each business has unique needs, requiring customized financial strategies. Roger encourages accountants to adopt forward-looking approaches and collaborate across departments. Emotional Factors and Debt Tolerance: The hosts discuss the emotional factors affecting entrepreneurs' debt tolerance and resource management. They place emphasis on the importance of profitability, accurate forecasting, and clear reporting to lenders. Maintaining Cash Reserves: Essential for seizing opportunities and making sound decisions. Cash reserves should be viewed as both a safety net and an opportunity fund, promoting Closing Thoughts: Roger and David explain why effective cash flow management is crucial for business stability and growth. By adopting tailored strategies, maintaining cash reserves, and frequently monitoring cash flow, businesses can navigate challenges and seize opportunities. Thank you for tuning into Building the Premier Accounting Firm. To learn more about how you can offer quality accounting services, including top quality cash flow management, call 435-344-2060. Sponsors: Universal Accounting Center Helping accounting professionals confidently and competently offer quality accounting services to get paid what they are worth. Offers: Schedule and have a 30-minute call with David to discuss any challenges you or your clients are having and attend a month of David's Cash Flow Advisory Masterminds for free. This includes access to the Mastermind archives to explore case studies and cash flow frameworks, strategies, and tactics. Between the call and the month mastermind sessions, that's a $650 value. Also download the EBook 10 Easy No Risk Habits to Start Managing Cash Flow Today Get a FREE copy of this book all accounting professionals should use to work on their business and become profitable. This is a must-have addition to every accountant's library to provide to have the premier accounting business today: "in the BLACK, nine principles to make your business profitable" – e-book "Red to BLACK in 30 days – A small business accountant's guide to QUICK turnarounds" – the how-to-guide e-book for accounting professionals For Additional FREE Resources for accounting professionals check out this collection HERE! Be sure to join us for GrowCon, the LIVE event for accounting professionals to work ON their business. This is a conference you don't want to miss. Remember this, Accounting Success IS Universal. Listen to our next episode and be sure to subscribe. Also, let us know what you think of the podcast and please share any suggestion you may have. We look forward to your input: Podcast Feedback For more information on how you can apply these principles in your business please visit us at www.universalaccountingschool.com or call us at 8012653777