In this episode, host Jeremy Wells, CPA, discusses why cash flow is the first priority for creative firm owners and why a basic accounting system is critical to manage it effectively.
Cash flow is the movement of money into and out of your business. You need cash to pay your bills, invest in your business, and meet your financial goals.
Creative firms face unique challenges that affect cash flow, such as irregular income, high expenses, slow payments, competition, and the personal needs of owners. Therefore, it's important for creative firm owners to be proactive, flexible, and resilient in managing their cash flow.
A basic accounting system is a set of tools and practices that you use to record, classify, summarize, and report your financial transactions and performance. It helps you track your income, expenses, assets, liabilities, and equity, and understand how they affect your cash flow, profitability, and financial position. By using a basic accounting system, you can monitor your cash flow, control your expenses, manage your debts and payments, and improve your decision making.
In this episode, Jeremy shares practical tips and insights on how to set up and use a basic accounting system, and how to overcome common cash flow challenges faced by creative firms.
If you're a creative firm owner who wants to better understand and manage your cash flow, don't miss this episode of "The JWellsCFO Show"! Jeremy provides valuable information and resources that can help you improve your financial management and achieve your business goals.
If you have any questions or comments about cash flow or basic accounting systems, please contact Jeremy or leave a review on your favorite podcast platform. Don't forget to subscribe to "The JWellsCFO Show" to get notified of future episodes and get access to more financial tips and strategies for creative entrepreneurs.
