15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Managing Cash Flow with Payroll Partners

Understanding the cash flow of small business is a tempestuous matter, one that often leaves owners with anxiety regarding their own cash flow. Managing the nuances of cash flow is essential to keeping a business profitable, but the consequences of mishandling this operation might prove more compelling — mistakes in accounting can doom a business to failure.
Hand of a business man holding a tall stack of money
What makes problems with cash flow particularly sinister is they have a tendency to come out of nowhere at the least convenient time. Even worse, some business owners don’t understand that a profitable business doesn’t automatically translate to positive cash flow. It requires plenty of due diligence to ensure the business is on the right track.

In the world of small business, many owners will inevitably ask themselves, “How are we handling our own accounting?” Enlisting a trusted payroll partner can help manage your cash flow in various ways, helping your business stay afloat.

There are tremendous benefits to outsourcing here, including better overall preparedness. Research shows that nearly a quarter of all businesses do not keep accounting records or produce financial statements. If your small business isn’t currently responsible for maintaining records like financial statements, how can you really plan to stay in business long term?

How much do you understand your selling cycle? You’re pulled in countless directions at a business owner, making it difficult to monitor how it affects your cash flow. Allowing a third-party to monitor your selling cycle can add a major boost to your business. They can help identify which part of the process — from early development to the final sale — needs to be refined. Without proper management, one aspect of your selling cycle can be a detriment to cash flow.

The added focus of a payroll partner also places additional emphasis on capital. Many small businesses ultimately fail because they lack sufficient capital to endure trialing periods of the economy. Similarly, these businesses that fail lack funding to take advantage of periods where they could actually flourish due to new market opportunities.

Finally, the insurance that comes with a properly managed balance sheet is invaluable — balance things incorrectly, and you’ll sooner or later find yourself facing harsh financial penalties. The books need to be weighed to allow the business to pay its debts with enough room left over to quickly access cash to further support regular operations.

Accounting Taxes Payroll Partners (ATPP) can maximize the way your business handles cash flow. Contact our Los Angeles office at 818-436-2775 for additional info, or visit our site to learn more about a specific service.