What is the one thing that most business owners fear they’ll run out of? It’s cash. But despite the stress that this can create, there is probably something even more concerning: the emotions surrounding cash flow as it relates to payroll.
There is nothing more important to you — or your employees — than payroll. Some employees check their bank account every payday to assure that they got paid. When a company runs into Cash Flow issues, you can put off paying your suppliers. You might put off some loan payments. You can even put off your rent payment for a while.
But you can’t delay payroll.
There is an emotional component to Cash Flow problems in a business. There is added stress. Your employees are depending on you. These are the people that you work with day in, day out. They depend on you to pay them, just as you depend on them to come to work.
Consider the following when you’re caught in a cash crunch:
Your feelings are involved in different ways:
What are the first things you need to do?
How do you fill the gap?
How do you keep it from happening again?
The best approach is to put together a 13 Week Cash Flow Forecast. This is something we as fractional CFO can help you create. Once in place, you’ll have more time to adjust when you see that shortage coming. Couple that with an active plan to head it off the next time, so that you’re not facing it again, and you have a winning strategy.
Our people are unique CFOs. They are all operationally
based financial executives.
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