Once you have the “tax bleeding“ÃƒÆ’Ã¢â‚¬Å¡Â under control, take action and protect the wound. “Protecting the wound” in business involves looking at the cash balance in your company’s checking account.
Cash is the lifeblood of a company! ÃƒÆ’Ã¢â‚¬Å¡Â Just as the human body requires a certain amount of blood for proper functioning, your business needs a certain amount of cash to function properly.
Do you know how much cash is actually the right amount?
Too much cash in a checking account allows for missed opportunities for substantial growth.
Too little cash causes your business to take on unneeded debt to operate.
Different companies have different cash needs. The recommended bank balance is between 2 and 6 months of expenses, but this amount can vary based on specific factors.
To find out the cash balance recommended for your business, contactÃƒÆ’Ã¢â‚¬Å¡Â Person CPA GroupÃƒÆ’Ã¢â‚¬Å¡Â today to schedule aÃƒÆ’Ã¢â‚¬Å¡Â 5-point Profitability Check Up.
David W Huff, CPA, PFS, MSÃƒÆ’Ã¢â‚¬Å¡Â is a partner atÃƒÆ’Ã¢â‚¬Å¡Â Person CPA Group.ÃƒÆ’Ã¢â‚¬Å¡Â He provides clients with tax preparation and consulting services, accounting services, retirement plan and benefit consulting, accounting software technical support and training, and management advisory services. His specialty is helping new businesses organize their operations to maximize tax savings and move quickly fromÃƒÆ’Ã¢â‚¬Å¡Â start-up to profitability. ÃƒÆ’Ã¢â‚¬Å¡Â You can reach David by email at:ÃƒÆ’Ã¢â‚¬Å¡Â email@example.com