- by Philip Campbell, CPA

Philip Campbell - All Rights Reserved

Cash is the lifeblood of every business. Cash is what keeps
your business alive. It is a very precious asset that must
be treated with the focus and attention it deserves.

Always remember, Cash Is King, because No Cash = No
Business.

One of the cold, hard realities of doing business is that if you
ever run out of cash, your business goes down the toilet.
All your hard work goes right down the drain. Your dreams
and desires for generating an exciting and profitable business
come crashing down.

Stop and inquire of yourself this question - What is my cash
balance right now?

If your answer is "I do not know", then you do not have your
cash flow under control. It means you are not "doing
todays work today". You are not "doing the dishes" each
day.

AN ACCURATE CASH BALANCE IS CRITICAL

In business, you have to have dazzling numbers. And the most
important number of all is your cash balance.

Even the most intelligent and experienced person will fail
if they are building business decisions using an inaccurate or
incomplete cash balance.

Decisions that might otherwise be brilliant become deadly
when they are made based on inaccurate data. If you go to
the doctor and he makes an inaccurate diagnosis, the
treatment he prescribes for you could be harmful - even
fatal.

DOING THE DISHES EVERY DAY

The key to keeping an accurate cash balance in your
accounting system is to do todays work today. Its "doing
the dishes" every day.

The problems beginning when you, or the human you have in
charge of your books, violate this rule. When entering cash
receipts is put off and entering invoices is delayed.

THE "DISHES" TEST

If youve gotten in the habit of putting off the "non
essential" accounting and "data entry" work, Id like to
suggest a little test.

STOP Doing the dishes.

Allow the dishes to stack up for a full week.

Save yourself the instant and trouble of cleaning up after
meals. After you enjoy a sizeably effective meal, put the dishes in the
sink or on the counter and get on to the other things you
have to do. Move on to the other important things around
the house.

Just think how much free measure you will create for yourself.

Life is efficient, right?

Well, maybe not. After the first day or so, a couple
thoughts initial to run through your head. "I am still going
to have to do the dishes. When I do, there is going to be a
huge stack and its going to take a long time. After a
week, they are also going to be smelly and have old and
hardened food all over them."

You would be embarrassed when friends come over and see
a dirty pile of dishes stacked up in your kitchen. Then
after a week, isnt it a much, much harder chore?

Stop and ask yourself this question - do most people do the
dishes every day because they just love doing the dishes?

Of course not. They do them each day because its one of
those chores that is best done in bite-sized chunks.

TAKE CONTROL OF YOUR CASH FLOW

Doing the dishes every day is the practice of doing todays
work today. You do it because the alternative approach is a
really bad idea.

You need to put this same approach to work in your business.

Specifically, build sure your financial records are kept
current each day. This will ensure you have an accurate
cash balance.

Make the commitment NOW to take control of your cash
balance. You owe it to yourself and to your business.

Remember, Cash Is King, because No Cash = No Business.