Experience taught us that cash is far more important than profit.
Experience taught us that cash is far more important than profit. In all of our activities, we are constantly working to steer companies away from for-profit thinking to ‘for-cash thinking’. Despite of excellent profits, nothing can be paid for without cash. Companies that have enough assets, but are close to their credit limit, cannot pay for anything.
Problems regarding liquidity are mostly caused by overemphasis on creating high gross profits margins, combined with oversupplying, forgetting subsequent costs, and failure to timely pay and collect bills. In many cases where we are contacted, it turns out that the administration simply was not adequately up-to-date, with the consequence that the entrepreneur did not know which invoices had to be collected and which bills had to be paid on a weekly basis. We also regularly see that companies get into trouble because they pre-financed too much. However, such cases are easy to adjust! Are you struggling with a liquidity issue and are you unable to find the cause and/or the solution to the problem? A liquidity forecast will help you put things in order.
Because 'for-cash thinking' requires a different philosophy and management style than for-profit thinking, you will need coaching. We have excellent tools to provide this. Van Eert Accountants & Advisers is happy to help you prevent any liquidity problem. With a good liquidity forecast, we create peace of mind concerning your liquidities.
We believe that cash is the most relevant aspect in bookkeeping. Cash is more important than profit. A good liquidity forecast gives you security and peace of mind. Would you like a tailor-made liquidity forecast and liquidity advice for your organization, based on our knowledge and expertise regarding the Dutch market? Van Eert Accountants & Advisers would love to help you. Please contact us to find out what we can do for you and your company’s liquidity.