Where’s My Cash?
One of the most common business questions we hear is, "Where is my cash?" The second most common is, “How can I have profit and taxable income and not have any cash in the bank?” And the third is, “What can I do?”
As CPAs, we’re trained to prepare and read cash flow statements. Unfortunately, many of our clients aren’t. Sound familiar? You probably receive a cash flow statement in your line of work, and can’t make heads or tails of it.
Cole Gavlas utilizes a unique tool called $COPEit! The five $COPE focus areas are:
$ = Financial—Financial results are just the tip of the iceberg. They give you insights into what is going on in your company, but they don’t tell the complete story.
C = Customers—Customers hold the keys to your company’s long- and short- term success. By examining every customer interaction, you can get a clear sense of what is driving financial outcomes.
O= Operations—The processes and procedures that drive your business are directly related to the financial results that are achieved. By reviewing documented procedures and then comparing them with implemented procedures, you will gain further insights into the financial and customer-related results.
P = People—No business can succeed without the right people. With a clear understanding of the roles and behaviors of your employees, you can determine if the team is supporting the organization in achieving its objectives.
E = End in Mind—Your business needs to know where it is going to get there. Understanding and reviewing the vision and long term plan of your organization can help you determine if results are supporting that vision.
What’s even better, $COPEit is interactive so you can see the relationship between profit and cash and the other areas of your business. Rather than talking about it, we can show you why selling more units at the same margin won't impact your cash flow problem. We can take a look at “what if” scenarios, and help you develop strategies to improve your cash flow.
How Cole Gavlas Can Help
If you would like to have a better understanding of your company’s cash flow, or better still, improve your cash flow, we can help. Give us a call to find out how Cole Gavlas and $COPEit can help improve your bottom line.