Ask an Accountant: Cash Management to Improve Your Bottom Line
Cash Management to Improve Your Bottom Line
By: Daniel Sturm, CPA, CCIFP, Partner
Cash management is the process of managing the inflows and outflows of cash in a business and is particularly important for construction contractors. Long payment cycles, unpredictable expenses, and fluctuating demand all emphasize the need for cash management. A solid cash management strategy and process can help with long-term sustainability and help drive additional income straight to your bottom line, especially in today’s interest rate environment.
With guidance from your financial advisor, excess cash can also be invested, creating additional cash flow and income
Ask an Accountant: The Importance of Monitoring Overhead Rates During Inflation
Over the last couple of years, businesses across all industries – especially contractors – have dealt with rising employee and human capital costs and rapidly increasing input costs. Although inflation data is now below 5% for April 2023 and projected to decrease slightly in May 2023, those figures are still above the norms of the previous two or three decades.
Ask an Accountant: How to Tame Your Fraudster
Electronic (ACH) payments are a convenient and often necessary means of conducting business with vendors. Unfortunately, while ACH transfers offer greater efficiency and liquidity as compared to traditional checks, they also bear increased vulnerability to fraud attempts (the proverbial double-edged sword). In our public accounting practice, we have seen small businesses targeted for ACH fraud with growing frequency and sophistication in recent months. As ACH fraud attempts intensify, so must our vigilance for detection and prevention.
