Chris Hervochon was interviewed for American Express article
We all know how important forecasting cash flow is to running a successful business, but how do you do it? What do you look for? Business experts weigh in on how they do it for their companies.
Chris Hervochon, the owner of a Better Way CPA, a firm based out of Hilton Head Island, South Carolina, points out that there may not be a major problem with your system for forecasting cash flow. Maybe all you need to do is some tinkering and reexamining your key clients.
“For instance, I work with a social media marketing agency that spends hundreds of thousands of dollars a month on social media ads,” Hervochon says. “Until recently, they were invoicing their clients in the month following that ad spend, which eventually created a cash crunch. Now, they invoice upfront so that cash is in the bank when they need to spend it to service their clients.”