Understanding long- and short-term cash flow is essential for proactive business owners to find steady success, even if the environment becomes volatile. And it’s particularly important for producers of packaged goods, whose sales typically fluctuate with the seasons. Let’s say you’re a gourmet popsicle company riding the positive vibes stemming from last month’s huge United Natural Foods, Incorporated (UNFI) order. While Whole Foods locations across the country are now able to enjoy your tasty treats, you might start noticing that distribution channel sales have all but seized up. Are you more than hoping that UNFI reorders soon? Wondering what will happen in December when people don’t consume as many frozen goods? Starting to stress about the two previous questions? Don’t.
Accountfully works with product-based business owners to help them anticipate scenarios like the slow season. We review historical data points to put present and future cash flow into context and then use that information to project how the business will do in the long term. As a strategic partner to our clients, we have conversations about maximizing cash flow and making it last and grow. We think about every decision that influences the bottom line, such as the appropriate time to order inventory, when to hire key team members, and how much to invest in new marketing strategies. In some cases, we even implement systems and applications that help streamline the business. For example, many of our product-based businesses leverage Dear Inventory for their inventory management needs.
No one said running a business is simple, but it’s a lot easier when you have a team serving both as support system and guide. Partner with financial experts who can keep an eye on previous years’ sales to map a clear path to your financial future, empowering you to make smart decisions to keep your business growing forward, even when things may be a little slow.
Accountfully is an outsourced accounting team that performs day-to-day accounting and bookkeeping tasks while also serving as a strategic partner to help small business owners navigate complex financial challenges and opportunities.
Wondering what numbers to pay attention to if you're a food entrepreneur or product-based business? check out our guid about key performance indicators.