Texas Cash Flow Consultants

Written by Patricia Tunstall
Bookmark and Share

Cash flow consultants are experts who understand how intertwined cash flow is with other aspects of a business; accounts receivable, inventory, and capital expenditures. These elements must be in equilibrium in order for the business to grow and finance its own growth. A healthy cash flow makes many things possible for a business, but when cash flow is crippled by accounts receivable, for example, the business can quickly go into bankruptcy.

Consultants Analyze Problems with Cash Flow

Actually, there is not just one source of cash in a business, but several sources. Operating activities produce cash inflows from sales, and cash outflows for expenses. Investment activities produce cash inflows from selling old assets, and cash outflows from investing in new assets.

A third group of activities--financing--brings in cash flows from borrowing money (going into debt) and from owners' financial input. Cash outflow goes to paying down debts and distributing profits to the owners. In each of these categories, the balance must be maintained so the business can take advantage of new business and pay for the necessary capital expenditures.

When accounts receivable tie up too much money, when sales decline, or when a large inventory is sitting on the shelves, the business is out of whack. Texas cash flow consultants are the regional experts at analyzing each of these elements in relation to each other in order to see which one has assumed too much importance, or which one is lacking. They can pinpoint the imbalance and suggest remedies, one of which is selling some of your accounts receivable and getting cash to put into your business.

Bookmark and Share