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Lessons from a Less-than-Ideal Cost Segregation Analysis

A cost segregation study categorizes the component parts of a commercial property for tax purposes, which allows the owner to optimize depreciation claims. A textbook cost seg analysis takes place not long after a property is acquired or a new building is completed, so the owner can begin taking full advantage of depreciation in the first years of ownership. In the storybook version, the owner has all the records neatly organized and completes the process in the right sequence.

For every cost segregation study that neatly conforms to textbook expectations, there are a dozen others with challenging wrinkles. Too many businesses lose out on the benefits of cost segregation analysis because they assume their case is outside the bounds of the textbook example. But analyzing a property with messy records and a complicated tax history can still create substantial benefits for the owner.

Here’s a great example of a project Whittaker & Company completed in a scenario you won’t find in the textbooks.

Early mistakes can cost a business

A Whittaker & Company client owns hotels. They bought an existing building for $9 million and put over $1 million more into renovating the property after the deal closed. Straight away, the business made some mistakes:

  • They allocated the full purchase price of the property among its existing assets and, as a result, claimed large depreciation deductions without having adequate backup.
  • During the renovation process they didn’t keep track of which assets were replaced. Instead, many replaced assets were left on the fixed asset schedule and continued to be included in the business’s depreciation claims. Instead, the company could have realized many of these losses in the year of the renovations.
  • The business waited almost two years before engaging Whittaker & Company to perform a cost segregation study. In that time they had filed a tax return, which included depreciation deductions for the newly acquired hotel using asset categories that left significant tax benefits on the table.

In a typical cost segregation study, much of the value comes from classifying assets so they qualify for faster depreciation than would be the case if they were bundled with the building itself. Many assets that can be classified as personal property can qualify for bonus depreciation in the early years of ownership.

In this client’s case, that value was diminished because they had already claimed a year of depreciation on incorrectly classified assets. As a consequence, the client had already lost out on a sizeable portion of the bonus depreciation that would otherwise have been available for the hotel’s equipment and furnishings.

Recovering from mistakes with cost segregation analysis

Nevertheless, the cost segregation analysis resulted in a significant advantage for the client. A cost seg study provides an exceptionally detailed schedule of assets. Using the schedule of assets from the study, the client could at last identify the assets that were removed during renovations. The savings from this piece alone were over $1 million. Because the report was exceptionally detailed, the business could also rely on it as support in the event of an IRS audit.

Together with other deductions identified during the course of the study, the client was able to make a deduction of about $1.8 million—on a $9 million purchase. We estimate that if the client had conducted the study in the year the building was acquired, they might have saved an additional $400,000 to $500,000.

The lesson for other commercial real estate owners is this: don’t be discouraged if your cost segregation study wasn’t conducted right away, or if your records are a mess. With proper techniques, an analysis can still yield substantial tax savings.

Whittaker & Company is your resource for cost segregation analysis

If your business is thinking about buying property or building new improvements, we strongly recommend exploring the potential savings that can come from cost segregation analysis. We’ve put together an information sheet that goes into more detail about cost segregation and its advantages. You can find it here.

The team at Whittaker & Company is proud of the value it has delivered for its cost segregation clients. We’re happy to discuss your circumstances to determine whether a cost seg analysis is right for your business. Reach out to us to start a conversation.

The Federal R&D Tax Credit is an Untapped Resource for Many Businesses

How much time and money does your business spend figuring out how to do something new or something better?

We talk to businesses all the time who don’t know their activities could qualify for the federal research and development (R&D) tax credit. Meeting the requirements of the credit takes effort and planning, but a business that commits to a disciplined approach can achieve substantial tax savings, especially once it has a process in place for correctly tracking qualifying expenses.

Whittaker & Company has developed a more in-depth introduction to the R&D tax credit, which you can download here.

Why should you care about the R&D tax credit?

Businesses typically miss out on the R&D tax credit. Many simply don’t know their activities qualify, because they don’t think of themselves or their industry as research-oriented. But the credit is designed to benefit many types of businesses. Industrial firms that constantly retool their facilities for custom jobs, software firms developing new applications, and even professional services firms working on better processes can use the R&D credit to capture tax benefits—provided they plan ahead.

Complexity is another reason businesses don’t pursue the R&D tax credit. Capturing the credit is not just a matter of adjusting the way a business’s accounting records express certain expenses or filling out a short form at tax time. Qualifying for the credit involves careful documentation over the course of a project, which means advanced planning is often needed to get the most from the credit.

The reason to take an interest in the R&D tax credit is simple: it allows a business to claim major categories of expenses as credits that can be used to offset taxable income. The credit captures wages paid to employees and supervisors working on qualified activities. It can also capture consultant fees, supplies, and computing costs. By channeling all of these expenses through a properly conducted process, a business can realize significant tax savings.

What activity qualifies for the R&D tax credit?

The R&D tax credit is available for businesses that pursue activities that meet the requirements of four tests:

  • The Uncertainty Test. At the start of the project the outcome must be unknown.
  • The Hard Sciences Test. The process must fundamentally rely on the principles of science or engineering.
  • The Business Components Test. The activity’s costs must be associated with an identified part of the company’s trade or business.
  • The Process of Experimentation Test. One or more alternatives must be evaluated to achieve a desired result and eliminate uncertainty.

The taxpayer must carefully document how its activities meet each of these tests. Tax professionals use the IRS Audit Technique Guide to track the details auditors look for. Ideally, a business follows the requirements from the start of every new R&D activity, with a genuine paper trail of management memos, corporate minutes, and research plans at one end and an analysis of outcomes at the other.

Start early.

Whittaker & Company encourages every business to take a look at the R&D tax credit as a potential source of savings. In our experience, the benefits of the credit grow as a business adjusts its processes to align with IRS requirements. It’s a process worth starting early, though it’s never too late to explore.

Do you want to find out if your business could qualify for the R&D tax credit? Give Whittaker & Company a call today to schedule a conversation with one of our professionals.

Catching Up with Daniel Sohn

Whittaker & Company Senior Manager Daniel Sohn moved a lot when he was younger. Born in Korea, Daniel later moved with his family to Vancouver, Canada. Next they swapped coasts for New York City, then hopped back west to a variety of cities in Orange County. The constant change likely informed his aversion to stasis. In fact, Daniel says he thrives on the unknown, making him a perfect fit at Whittaker & Company.

Daniel joined the firm in 2006, his first job following college. He’s stayed here because the company’s culture is driven by a constant urge to improve.

Thriving in a time of constant change

“Nothing stands still at Whittaker & Company,” Daniel says. “In most of the CPA world, everything is the same; same forms, same processes year after year.” Our business, however, is evolving, bringing with it that untraversed territory Daniel enjoys. Every year has presented a new challenge as our scope of services has evolved.

Not only are Whittaker and Company’s capabilities and offerings growing, but their approach to accounting continues to evolve as well. “We’re always innovating and challenging the status quo,” Daniel says. “Just because that’s how everyone else has done it in the past, it doesn’t mean that’s how we’re doing it now.”

Mountaineering with spreadsheets

If working at a typical accounting firm is running laps around a track, Daniel likens his time at Whittaker & Company to a journey through the mountains; the topology and scenery in constant flux. And when it comes to tackling problems, he likes to look at multiple angles to seek for solutions.

“Let’s make something different,” he says. “That’s where the excitement comes from.” Daniel points to the Efficient Enterprise process, strategic guidance, and forward-thinking tax planning as examples of how the company innovates in the often stagnant CPA realm.

A business built on a foundation of caring

It isn’t just the innovation and evolution that keep Daniel at Whittaker & Company, however. He also enjoys the company’s culture of caring.  Throughout his life, he continuously finds deep comfort in the church. He sees parallels in how a successful business approaches its customers and clients, namely caring for them.

“When we care for each other, we learn from each other,” Daniel says. “Caring allows us to be diverse and builds upon our strengths.”

Growing inwardly to expand horizons

The company’s culture of empathy is focused inward as well, and Daniel has felt it firsthand. He was still in college when he began working with Dan Whittaker, who became an early mentor for Daniel.

“He’s the biggest reason I’m here,” Daniel said. “Dan constantly pushed me to do something big and take a risk. It’s his encouragement that catapulted me to get certified.”

In Dan, Daniel has found more than a mentor, though—he’s found a collaborator. It’s another example of how the business innovates. While Dan has a more traditional CPA background and approach, Daniel brings an economist’s mindset. “We can approach problems from different angles, and we somehow meet in the middle,” Daniel said of he and Dan’s often unorthodox approach to creating solutions. “My feedback is valued and validated, and I really appreciate that.”

Whether guiding tax and accounting managers, providing strategic and business planning services, or offering transaction support, Daniel plans to continue caring, innovating, and exploring the unexplored. It’s that excitement that keeps him going.

Interested in learning more about Daniel or the rest of the Whittaker & Company team? We’d love to hear from you. Give us a call or send us an email today.

To Understand Cost Segregation Studies, Start at the Beginning

Cost segregation—“cost seg” to a tax accountant—can be a potent strategy for owners of commercial real estate to take advantage of the faster depreciation schedules applicable to qualified components of their properties. The basic contours of today’s approach to cost segregation were established in 1997 by the United States Tax Court in its decision in The Hospital Corporation of America v. Commissioner, 109 T.C. 21 (HCA). The case illustrates how a simple distinction can lead to significant tax savings.

What is depreciation?

In a nutshell, depreciation is used for business or income-generating assets that will be owned for more than a year and therefore cannot simply be expensed. An asset subject to depreciation generates a tax loss for its owner each year over the course of its depreciable life. Depreciation schedules are defined by IRS rules, which provide clear requirements for how particular types of assets are depreciated.

Commercial real estate typically must use a 39- or 27.5-year depreciation schedule. These are long periods when compared with the schedules for other types of assets, which can be as short as 5 years and may qualify for bonus depreciation in the first year of service. The aim of a cost segregation analysis is to identify pieces of a commercial property that might qualify for a shorter schedule, so their depreciation value can be used to offset taxable income more quickly than would be the case if they were characterized as commercial real estate.

The illuminating case of HCA v. Commissioner

The HCA case involved a property that included a hospital building. The taxpayer in the case successfully argued that it should be allowed to treat distinct components of the hospital building’s infrastructure, such as the system that distributed oxygen to outputs in every room, as equipment rather than real estate. By doing so the company would benefit from the much faster depreciation schedule applicable to equipment.

HCA illustrates a key distinction that can help companies begin to think about whether they might benefit from a cost segregation analysis. If a particular asset is structural or essential to the basic function of a building, it must follow the schedule applicable to the building. For example, a building’s electrical wiring is structural.

On the other hand, a building component that is not structural can be treated as a separate type of asset. In HCA the oxygen distribution system was built into the hospital’s walls, but the court still allowed it to be treated as a separate asset type because it was not essential to the building itself.

Is a cost segregation analysis the right approach for your business?

Real estate companies and other property owners are increasingly using cost segregation analysis to identify tax advantages in areas including the purchase of property, renovations, and expansions.

Cost segregation reports can take many forms, depending on the particular needs of the business, the techniques of the preparer, and other factors. The IRS Cost Segregation Audit Techniques Guide provides analysts with the parameters they need to provide their clients with reliable guidance as to whether property is structural or permanent, or whether it can be classified as tangible personal property and therefore eligible for faster depreciation. It’s crucial that a cost segregation analysis include documentation to support the business’s choices in the event the IRS audits its decisions.

At Whittaker & Company we are passionate about cost seg analysis. As part of a comprehensive suite of tax strategies, it can provide owners of commercial real estate with substantial benefits. Is your business getting the most from its real estate assets? Get in touch with us today to start a conversation.

Tax Strategies In Turbulent Economic Times

Surprisingly few businesses take a proactive approach to tax planning. For many, the time for thinking about tax strategies is during the preparation of tax returns. By then, many of the most impactful tools for lowering tax liability and improving cash flow are no longer available.

There is never a bad time to start being proactive about tax planning. During an economic downturn, the strategies available to a proactive business become even more valuable.

The economic shock of the coronavirus pandemic will remain with us for a while. By incorporating tax strategies into a broader plan for weathering the storm, businesses can improve their chances of coming out of the downturn in better financial health.

In this strategy paper, we explore some of the proactive strategies we recommend to clients when recession looms. You can download it here.

Businesses and individuals face many different types of tax. A comprehensive tax plan rarely rests on one piece alone, but instead is built from the synergies of several strategies taken together. At Whittaker & Company we draw upon well over 40 distinct strategic layers to tailor solutions that fit the client’s unique circumstances. The following are, therefore, only the tip of the iceberg.

Our goal is to set every client on a proactive path in all aspects of their business planning. We examine your business from top to bottom and create custom tax and accounting strategies to take it where you want to go. Give Whittaker & Company a call if you need tax and accounting strategies to help your business through the crisis and beyond.

Strategies for Controlling Accounts Payable

Summer is heating up, but an economic snowball is growing larger every day. Many businesses are seeing wild fluctuations in revenue and cash flow, which may translate into ballooning accounts payable (AP) ledgers. The cascading effect of interconnected businesses not paying their bills threatens to topple firms that aren’t following good practices for financial health.

Especially during these times of tight cash, getting control of accounts payable is an essential part of improving overall financial performance. These are four ideas worth considering as you think about your business’s AP:

  • Lean into your vendor relationships.

A business’s accounts payable are a byproduct of its relationships. When those relationships are built solely on a commercial exchange, they might not be reliable when something goes wrong. To be strong, vendor relationships need a human connection to go with reliable, consistent performance.

When faced with AP challenges, a business that has fostered good relationships with its vendors can use that to negotiate. The supplier who refills the company’s water cooler may not have much room for price breaks, but it might keep the water coming another month if it trusts the business will honor its debt when the time comes. The same is true for a landlord or a bank. A property manager is more likely to work with a business she feels connected to, rather than automatically issuing penalty charges.

For those who haven’t already established good relationships with their vendors, now is as good a time as any to get started. Letting a vendor know about short-term cash problems and offering to work out a mutually beneficial arrangement is still significantly better than letting the unpaid bill sit unacknowledged.

  • Adopt disciplined practices for paying bills regularly on your schedule.

Remarkably few small businesses follow a routine for paying bills. Some pay every bill as soon as it arrives, while others allow them to stack up and only pay once their vendors start to ask questions. Paying early is a good way to improve upon the relationships we talked about above. But it isn’t always a good practice when cash is tight.

Some simple practices can take the chaos out of paying bills:

  1. Establish days when bills are paid, such as the first and third Wednesdays of each month.
  2. Verify that the services or goods related to an invoice have been delivered before paying it.
  3. Having regular days for making payments allows for deliberate choices about when to hold off paying an invoice.
  • Examine your payables and eliminate unnecessary expenses.

Every business should conduct a detailed analysis of its outgoing expenses on a regular basis, preferably monthly. A surprising number of businesses needlessly lose cash every month to things like unused subscriptions. Just cutting out small but recurring expenses can have significant long-term benefits.

Understanding the contents of accounts payable from month-to-month also will highlight where the company’s major costs are. For many of the businesses we work with, just taking the time to analyze accounts payable reveals unexpected channels of loss that can be shrunk or closed without harming the core business.

  • Do you need internal controls?

Internal controls are policies and procedures designed to protect a company from risk. Their scope goes well beyond financial matters into areas like human resources and corporate governance. But in the finance and accounting realm, they can play an important role in preventing problems like runaway accounts payables.

Internal controls have become an obsession for businesses over a certain size. Publicly traded companies expend enormous resources on developing and enforcing complicated internal control regimes to satisfy their audit requirements. Many mid-sized firms that don’t face public scrutiny adopt elaborate control procedures to prevent fraud and assure the leadership team that it has sufficient command of the company’s resources.

For many small businesses, the notion of internal controls may sound like stuffy bureaucratic terminology that has no place in a lean operation. Simple practices can go a long way toward getting a grip on AP. These are a few examples:

  • Keep track of every commitment so surprise invoices never arrive.
  • Review bank and credit card statements in detail every month.
  • Tie payments to invoices that are verified by people who are responsible for that vendor relationship.
  • Set limits on how much individuals can commit the company to spend—for example, by signing a contract—without first getting the approval of management.
  • Prevent personal expenses from becoming business expenses.
  • Ensure financial duties are performed my multiple people, to prevent fraud and catch mistakes.

Get Control of Accounts Payables and Beyond with Whittaker & Company

Control of accounts payable is just one part of the layered strategy of financial management Whittaker & Company provides to our clients. Is your business struggling to stay on top of a snowballing accounts payable problem? We can help. Give us a call to start a conversation today.

The Accounting and Tax Implications of PPP Loans

Many of our clients have taken advantage of the Small Business Administration’s Paycheck Protection Program (PPP). PPP loans are providing essential relief to businesses that might otherwise be forced to cut staff, or worse. With the cash in hand, now is the time to understand how the loan should be treated for accounting and tax purposes.

PPP Loans under U.S. GAAP: Debt or Grant?

U.S. Generally Accepted Accounting Principles (GAAP) do not currently have guidance that specifically addresses the treatment of a forgivable loan from a government entity. Absent specific guidance, it would be acceptable to account for PPP loans as debt under Accounting Standards Codification (ASC) 470 on the basis of their legal form, even if the business expects the loan to be forgiven. Alternatively, a business may have the option of characterizing the loan as an in-substance government grant.

When treating a PPP loan as debt, several accounting principles come into play:

  • The full amount of the loan is recognized as a liability.
  • Interest is accrued at the program’s specified 1% rate.
  • Third-party expenses incurred in connection with the loan, such as professional service fees, can be deferred and amortized over the lifetime of the debt obligation.
  • The loan will remain recognized as a debt until the government issues a formal notice of its forgiveness in response to the business’s loan forgiveness application.
  • Loan proceeds and repayments are treated as financing activities for cashflow accounting purposes.

Some businesses may be able to characterize their PPP loans as in-substance government grants under International Accounting Standards (IAS) 20. Bear in mind that U.S. GAAP has no provision for treating a forgivable government loan such as those under PPP as grants. Therefore, businesses that must follow a strict GAAP approach may not have this option.

The main objective of accounting for government grants under IAS 20 is for an entity to recognize the grant in the same period or periods in which it recognizes the corresponding costs in the income statement. The grant approach relies in part on the company’s assumption that the loan will be forgiven. In essence, the company’s compliance with the forgiveness requirement is treated as the consideration for an income grant.

On the entity’s income statement, the grant is presented either as a credit to income (in or outside of operating income) or as a reduction in the expense the grant is intended to defray.   

When taking the grant approach, a business needs to continuously monitor the likelihood that it will qualify for forgiveness. To the extent that part of the loan proceeds may need to be repaid, the amount booked as income will need to be reversed and instead treated as debt.

The Tax Treatment of PPP Loans

Section 1106(i) of the CARES Act explicitly provides that PPP loan forgiveness will not be treated as taxable income. IRS Notice 2020-32, issued on April 30, clarifies that although the forgiven amount of a loan is not treated as taxable income, qualified expenses paid with the loan proceeds cannot be claimed as deductions.

To qualify for forgiveness, PPP loan proceeds may only be used for qualified payroll, mortgage, rent, and utility expenses. Only 25% of a loan may be used toward non-payroll expenses. Due to the forgiveness provisions, businesses should already be planning to carefully account for how they use the loan proceeds. IRS Notice 2020-32 simply gives another important reason to keep track of how PPP funds are allocated.

Whittaker & Company is here to answer your questions

The team at Whittaker & Company is keeping track of the details around PPP so you don’t have to. Do you have questions about how to account for your business’s PPP loan? Give us a call.

How to Choose the Right KPIs During an Economic Crisis

In challenging economic times, an agile business can not only survive, but thrive. With so much of the business environment turned upside down by the pandemic, executives in every industry are scrambling to reimagine the plans they brought into 2020. As they make adjustments, business leaders should double check that their key performance indicators (KPIs) are appropriate for the times.

The wrong KPIs can send a business off course.

The right KPIs serve as valuable tools for measuring the health and trajectory of a business. Conversely, the wrong KPIs can paint an inaccurate picture, whether too rosy or too grim. Managers who fixate on an inappropriate KPI can end up making bad decisions.

What makes a KPI good? The answer depends on the company’s goals. A KPI should provide management with a way to verify that the business is moving toward a specific target. As much as possible, it should be grounded in objective facts—financial results or other concrete measurables. When tracked over time, a good KPI tells management where the company is today and where it is headed.

In today’s climate, most businesses are tracking KPIs chosen in the midst of a strong economy. For some firms, the reasons for following certain long-established KPIs have faded from memory: they’ve simply become a habit. Troubles come when management doesn’t recognize when a metric no longer tells enough of a story about the reality of the business.

Tailor KPIs to the current climate.

Remember that KPIs are only measuring tools. When a KPI goes sideways it can spark useful conversations, but it may not mean that panic is warranted. It’s important for managers to understand what each KPI means, so it can be correctly interpreted and, when appropriate, acted upon.

A business doesn’t necessarily need to stop tracking its measurables established during the good times. But choosing a few new ones in light of the new economic reality can shed light on the business from a meaningful new angle.

Every business needs to choose KPIs that are appropriate for its industry and goals. These are a few examples of KPIs that we are recommending to clients.

  • AR days and sales outstanding: By tracking how many days outstanding invoices remain in accounts receivables a business can begin to address cash flow issues with targeted strategies.
  • Days in AP: Applying a similar logic to expenses can help managers find ways to reduce expenses and measure the effectiveness of their approach.
  • Revenue per employee: By measuring revenue against head count a business can develop a useful way to evaluate its staffing needs.

Whittaker & Company is here to guide you.

Confronted with today’s uncertainty, the business community needs to share ideas now more than ever. Are your KPIs doing enough for your business? At Whittaker & Company we’re committed to providing our community with resources for making better financial and business leadership decisions. How can we help you? Give us a call today.

A Simple Approach to Analyzing the Source of a Business’s Cash Crunch

The economic shock of the coronavirus pandemic is starving many businesses of cash. The crisis has radically disrupted the flow of payments that usually lubricates the interconnected world of business. Especially impacted are smaller firms that rely on revenue from a few customers to balance the books at the end of each month.

A surprising number of businesses don’t systematically track their cash flows. As a result, when cash gets tight they don’t have the tools they need to address the problem in a smart way.

You don’t need a full-time staff of accountants to begin getting a grip on cash flow. With just a few simple data points, a business owner can gain the insight required to turn the problem around.

The approach Whittaker & Company recommends to our clients involves a quick weekly review of a few records and compilation of key numbers into a spreadsheet. The goal of our approach is to develop a measuring stick that will indicate whether a company is on the right track with its cash management strategies. Precision is great, but even if the analysis needs to use a few rough estimates to be complete, it will put the business owner in a more informed position.

These are the steps of our approach to simplified cash flow analysis:

 

Step 1: Gather cash balances.

The first step is to record the company’s cash balance at the start of the week. You’ll want to take this information both from the company’s accounting records and from its bank statements. This way, outstanding checks that aren’t reflected on the bank ledger can be accounted for in the analysis.

 

Step 2: Quantify deposits and expenses.

Next, compile a record of the prior week’s inflows and outflows. These figures will anchor the analysis. A granular approach, vendor-by-vendor and customer-by-customer, will help with long-term accuracy. Don’t worry if the first few weeks are unusual in some way. Tracking expense spikes or dramatic dips in revenue is an important part of the analysis, and the picture drawn by a consistent, week-to-week analysis needs to include them. 

 

Step 3: Develop projections.

Compile a list of projected inflows and outflows over the next four weeks or longer. In uncertain times, important figures like revenue might require an informed guess. Again, take the time to itemize your projections. Some customers may have a habit of not paying on time, while others are as reliable as clockwork. After going through this exercise for a while, you’ll find that your estimates become more accurate.

Based on these projections and the information you gathered in steps 1 and 2, you can predict where the company’s cash position will be at the end of the week. 

 

Step 4: Evaluate your predictions.

At the end of the week, compare your current cash balance with your predictions at the start of the week. The first few weeks probably will be off the mark, because you’re still learning how to make accurate predictions in step 3. If your projections weren’t on target, use your spreadsheet to study why that happened. 

After following this exercise for a while, you’ll begin to make better predictions. You’ll also develop a sense of the specific areas where your business’s cash flows aren’t working as they should. If customers aren’t paying on time, perhaps your collections process needs to be more aggressive. If expenses are too high, are there areas that can be cut back or renegotiated with vendors, landlords, or lenders? 

Whittaker & Company has developed a simple spreadsheet for clients to use as they work through this analysis. If you’d like a copy, send us an email

 

Were’ here to support you.

How is your business dealing with the current crisis? We’re eager to help our clients and colleagues find strategies for getting through what promises to be a significant recession. If you’re ready to take proactive steps to improve the financial health of your business, get in touch with our team today.

Approaches for Improving the Outlook of a Cash-Strapped Business

If your business is facing a cash crunch, you’re not alone. In good economic times and bad, businesses in every industry can find themselves struggling to maintain financial balance from month to month or even week to week.

Cash challenges can come from a number of directions. Perhaps a key customer has stopped or delayed paying its bills, or an investment has tied up resources without generating the anticipated return. Regardless of the problem’s origins, there are tactical and strategic steps executives can take to take control of their cash situation.

When cash is a problem, there are several strategies owners and managers can take to begin improving their business’s financial health. Analyzing cash flows, choosing the right KPIs, and recommitting to basics are all good ideas. We’ve put together an information sheet that takes a closer look at each of them. Download it here.

At Whittaker & Company we give clients the resources and advice they need to tackle cash problems for the long haul. By adopting effective cash monitoring practices and proven strategies, your business can turn cash into a strength. Give Whittaker & Company a call today to take immediate steps toward better financial health.