Cash flow is a top concern for most businesses today. Cash flow forecasts can help you predict potential shortfalls and proactively address working capital gaps. They can also help avoid late payments, identify late-paying customers, and find alternative funding sources when cash is tight. To keep your company’s cash flow positive, consider applying these four best practices.
Michael D. Machen, CPA, CVA
Recent Posts
Finding Relief: Tax Strategies to Generate Immediate Cash Flow
Posted by Michael D. Machen, CPA, CVA on Oct 09, 2020
The Persevere stage of economic recovery is also known as “the dip” immediately following a crisis, or in this case, the COVID-19 pandemic and resulting recession. During this time, businesses of all sizes are in triage mode, taking immediate action to protect their employees and keep the lights on. Achieving these goals requires agility, strategy, and resilience, but it also requires another key element: liquidity.
Posted in Business Advisory
2020 Election Tax Watch: Comparing Candidates' Potential Tax Policies.
Posted by Michael D. Machen, CPA, CVA on Sep 28, 2020
The U.S. presidential election is just over a month away, yet neither candidate has released a formal, detailed plan addressing his vision for the tax code. We can, however, gain a sense of how their approaches differ through casual mentions of some aspects of tax policy on the campaign trail.
Posted in Taxation
How to Report COVID-19-Related Debt Restructuring
Posted by Michael D. Machen, CPA, CVA on Sep 21, 2020
Today, many banks are working with struggling borrowers on loan modifications. Recent guidance from the Financial Accounting Standards Board (FASB) confirms that short-term modifications due to the COVID-19 pandemic won’t be subject to the complex accounting rules for troubled debt restructurings (TDRs). Here are the details.
Posted in Business Advisory
Forecasting Financial Results for a Start-up Business
Posted by Michael D. Machen, CPA, CVA on Aug 13, 2020
There’s a bright side to today’s unprecedented market conditions: Agile people may discover opportunities to start new business ventures. Start-ups need a comprehensive business plan, including detailed financial forecasts, to drum up capital from investors and lenders. Entrepreneurs may also use forecasts as yardsticks for evaluating and improving performance over time.
Posted in Business Advisory
How Furloughs and Layoffs May Affect Company Retirement Plans
Posted by Michael D. Machen, CPA, CVA on Jul 16, 2020
The coronavirus pandemic has forced many employers to implement some form of workforce reduction to continue operating. While furloughs and layoffs have a significant and immediate impact on a company’s operations, plan sponsors also need to understand the longer-term effects workforce reductions have on participants’ benefits and retirement accounts.
Posted in Business Advisory
Businesses are emerging from various pauses and lockdowns, some in better shape than others. Many businesses continue to grow and prosper, and many likely are doing so through a merger or acquisition. Others are looking to merge into or be acquired by other businesses.
Posted in Business Advisory
Family Wealth Planning in a Time of Uncertainty
Posted by Michael D. Machen, CPA, CVA on Jun 12, 2020
The full impact of COVID-19 is unknown. While we wait for questions to be answered, many are asking what can we do right now? What's next for our families? What's next for family businesses and the people who work for them? Planning for our future generations is the greatest gift we can give, particularly during times of uncertainty.
Posted in Business Advisory
Benchmarking: Why Normalizing Adjustments Are Essential
Posted by Michael D. Machen, CPA, CVA on May 22, 2020
Financial statements aren’t particularly meaningful without a relevant basis of comparison. There are two types of “benchmarks” that a company’s financials can be compared to — its own historical performance and the performance of other comparable businesses.
Posted in Business Advisory
CARES Act Relaxes Qualified Plan and Employee Benefit Rules to Improve Cash Flow for Employer and Employees
Posted by Michael D. Machen, CPA, CVA on Apr 07, 2020
As the number of employers and employees impacted by the novel coronavirus (COVID-19) grows each day, employers with workplace retirement plans may find that employees may be looking to those plans now more than ever to help cover financial hardships they are experiencing. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (H.R. 748) includes several relief provisions for tax-qualified retirement plans, expands health care flexible spending accounts so funds can be used for over-the-counter items, clarifies some health insurance plan questions, and, through year-end, allows employers to reimburse employees for student loan payments tax-free. This alert explains those items. Further guidance will be needed from the IRS and DOL to answer many open questions about how these relief provisions are intended to work.
Posted in Business Advisory