The CPAs you support may have the know-how to get the cash flowing for your firm, but they might not always have the time to research ways to maximize earning potential. That’s where office managers like you come in. You foster your firm’s success each day by streamlining operations and enhancing client service. Cash flow is one more area you’re well-positioned to optimize. Here are five effective strategies you can employ to boost your firm’s cash flow.
1. Implement cash flow budgeting
Whether you create your firm’s budget or can influence the firms’ partners in the budgeting process, this is a great place to start to make sure you’re set up for optimal cash flow planning. It can be tough to boost cash flow without having a reasonable idea of how much revenue your firm could make over the course of the year. One effective way to keep up with this is by creating a cash flow budget. This budgeting strategy can help you predict whether your firm will generate more revenue than it spends.
Examine your firm’s profits from the previous year to create a sales forecast, predicting where profits may rise and fall throughout the year. Use this data to predict profits and expenses and come up with a projected bottom line. Note that this practice often works best in short windows (think one to six months), as it can be difficult estimating cash flow over a longer period of time.
2. Facilitate online payments
Thanks to Amazon, eBay, Uber, and a myriad of other internet-based businesses, more and more people today are paying for goods and services online. In fact, a recent survey showed that 65 percent of people expect to be able to pay their bills from a service provider’s website. If your firm isn’t already set up to accept online credit, debit, and ACH payments, now is the time to remedy that. You’ll not only better meet client expectations, but also enable them to pay their bill immediately upon receipt, which means improved cash flow for your firm.
Research and compare payment providers to find the best fit for your firm, and then schedule time to recommend options to the firm partners or other key decision makers. If you meet resistance, remind partners that research has found professional services firms get paid as much as 39 percent faster when accepting online credit card payments…..
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Visit cpacharge.com/aicpa or call (877) 685-3778 for more information on the AICPA online payments program for AICPA members.