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Wellness Capital Management is pleased to offer an in-depth complimentary 30-minute Wellness Business Consultation.

New Year Planning

Business Q & A

Q. Why is Cashflow related planning so important?
A. Cashflow is a real time snapshot of how your business functions financially during a specific time period. The snapshot is then extended, with variables like seasonality and expansion of services, to reflect how much money you will have to work with at ANY given time in the future. Seeking capital and budgeting for regular expenses becomes an easier task with cashflow planning. If you plan in this manner, a low financial point in the future can be worked on prior to it happening instead of the traditional method of fixing a problem after your profit and loss statement arrives from the accountant. This gives you peace of mind about your money.

Personal Tip: The Impact of HONESTY

Many businesses are built on "spin" rather than honesty; people know 'spin' when they get it. While public relations is valuable, it is not what your business should be built on; PR is an outreach of your business. Honesty with your guests and suppliers has a greater impact on your practice. Give them a healthy dose of honesty and the immediate impact may be that a problem gets resolved more quickly, or a situation gets diffused; diffusing a situation with honesty also can allow the parties to step away from the blame game.

Language of Cash Flow

This is MONEY EARNED YET NOT RECEIVED: the sale or work is completed, the customer is billed but the money is not yet collected. Cashflow planning takes into account WHEN the money will be received. Realistically planning for the payment of insurance billings, for example, will influence your cashflow and resulting decision making. Invoice terms: net 30, discounts for prompt payment, or due on receipt are all options that affect your financial planning. As we enter these variables into your Business Roadmap, (your cashflow model), you will have a greater knowledge of how accounts receivable impacts your future cashflow and success of your practice.