If you want to protect your company’s bottom line, you need to manage your cash flow meticulously. Unless you have a background in corporate accounting, though, you may not know how to get started. The business accountants from Sharrard McGee & Co PA in High Point and Greensboro, NC, can help. Below, their team shares a few tips to get you on the right track.

Business Accountants Share 3 Tips for Managing Your Cash Flow

1. Calculate Your Breakeven Point

If your company is a small start-up, you may not have a positive cash flow yet. That’s okay, as long as you give yourself a goal to strive for in the near future. Calculate your breakeven point, and track your cash flow closely so you know when you will approach it.

2. Maintain Liquid Assets

It might make financial sense to put all your money back in the business, but you need to maintain some liquid cash just in case you ever have a negative cash flow. If you’re a fairly new company, a negative cash flow is almost inevitable, but you can minimize its impact by being prepared.

3. Strategize Your Due Dates

Try to collect receivables as soon as possible to reduce the risk of missed payments from your clients. When it comes to payables, though, try to extend your contracts as long as possible, so you have some wiggle room in case you’re short on cash at the time the goods or services are rendered. Make sure your vendor will not charge you a late fee when negotiating for 60- or 90-day terms, though.

If you just started a company and need professional accounting services to ensure you stay on track, turn to Sharrard McGee & Co PA. Check out their website to learn more about the accounting and financial services they provide. Call (336) 884-0410 to talk to a team member in High Point, or dial (336) 272-9777 to talk to a business accountant in Greensboro.