It’s Time To Flip The Script On Cash Flow! - Nikole Mackenzie - Momentum Accounting
Cash flow is the lifeblood of every business and agencies are no exception. Without a steady and reliable inflow, it can be difficult to keep up with payroll and other payments, fund your next big project, or plan for growth. Unfortunately, many agencies run into issues regarding managing their cash flow - either there isn’t enough profit to sustain positive cash flow, or collections are unsustainably late.
Good accounting practices and efficient invoicing are key to supporting healthy cash flow. As an agency, you must be aware of your accounting reports and stay ahead of invoice deadlines. You should also look into the best accounting software for agencies so that you have accurate financial information at your fingertips - enabling faster decision-making and providing visibility into cash flow.
If you feel It’s time to flip the script and get your cash flow under control, you must listen to Nikole Mackenzie. Her company Momentum Accounting helps agency owners boost cash flow and increase profits by implementing modern integrated accounting solutions.
Listen to Nikole Mackenzie, CEO of Momentum Accounting, to learn more about cash flow. Here is an introduction from her article in the Agency Growth Book:
"Cash flow is the lifeblood of every business. It’s the fuel that drives growth. When it sputters or stalls, it can put your entire enterprise at risk.
In the agency world, there are a few reasons for cash flow issues:
1. Not enough profits to sustain positive cash flow
2. Not enough cash on hand to weather the ebbs and flows of large projects
3. Ineffective invoicing and collections
Throughout this book you will find strategies and great ideas to deal with many issues affecting agency growth. This article deals with invoicing and collections and shows you how to transform it from a nuisance to a competitive advantage.
The old way...send an invoice and wait to get paid.
Most agencies push invoices out and wait to get paid. In fact, depending on the size of the agency and the clients they deal with, the average wait to get paid ranges from more than a month to up to 52 days!
That creates an enormous strain on your cash flow because you have to float all of the expenses it takes to earn revenue."
