When a good business has a cash flow problem

[Nicholas Floyd]

One thing I’ve noticed is that a business can be profitable on paper and still run into situations where access to capital becomes important.

A business owner may need funding to purchase equipment, cover a large order, hire additional employees, expand into a new location, or simply bridge the gap while waiting on receivables.

That’s one reason I think accountants and CPAs are in such a unique position. They often see what’s happening financially inside a business before almost anyone else does.

Having a reliable business funding resource available can give those clients another option when the numbers make sense, instead of watching them delay a good opportunity because the capital isn’t there yet.

For the accountants and CPAs here: how often do your business clients bring up access to capital or cash-flow issues during the year?