The other day I learned a lesson about cash. The lesson was always there but I didn’t really pay that much attention to it…until, of course, i need to pay attention to it.
The truth is cash is very very important to run any business and even more importantly, access to cash is necessary. But the real value is not the cash itself but the management of that cash asset and that’s the lesson I learned.
The lesson was learned when I got sick and tired of my accountant/bookkeeper calling me at the last minute telling me that we need money in the bank to meet payroll. Now the truth of the matter is the cash was always available and accessible but the reason I kept getting there calls from my bookkeeper was that he was not planning the management of the cash properly so we were ready for payroll. (Warning…just because they say they are accountants/bookkeepers does not mean they know everything and as the CEO of your company …no matter what the size…the buck actually stops with you).
So…I set in place a strategy to use all my cash tools available so I could properly plan for payroll, as well as the government remittances, suppliers etc. The solution was simple…payroll became the priority. I simply switched our focus for planning aand giving the tools I have to access to cash with…covered the rest of my needs.
Simple but only because I finally took the time to learn the lesson!
What are your thoughts?
