Taxes by the Book: A Biblical Guide to Tax & Business Management is now available on line at http://www.hiscpa.com/blog/ It will be published here in full and is a must read for all seeking to take God's Principles to Tax & Business Management
For a rapidly growing business or any who are going to have short or long term financing needs, it is critical for an entrepreneur to consistently stay in touch with their banker. An owner needs to stay in touch with their CPA first and then develop a relationship with a banker. This is critical to a business owner's success. Many times I have personally witnessed a business owner rushing into a bank's office seeking cash to cover the next day's or week's payroll. Although this is an extremely valid need, as all would agree, the act of responding on an ad-hoc or emergency basis sends a message to the banker and all concerned.
Upcoming cash needs should not be a surprise as the key managers and owners should be well versed in upcoming cash needs. When you are meeting the needs of a rapidly growing company, you are often faced with the cash needs to finance new receivables, an expanding inventory and the increased needs of personnel cost all concurrently. Thus, it is critical to constantly stay abreast of current financial operations and their intersection of financing needs and specifically how they impact the company's cash balances.
To maintain the best relationship with your banker as possible, you will want to be sure to continually contact your banker keeping them informed of business decisions and trends. You will want to forward to your banker, several times a year, the company's current financials, projections for the upcoming periods and a narrative detailing past operations and plans for future operations. In doing so you will both have a clearer view of all of the internal aspects of your business and you will also build a lender's confidence in your ability to both manage your business as well as to maximize profits and opportunities as they occur.
If you are on the verge of exponentially increasing the size of your business, it is an even more critical time to keep your lender informed of upcoming surges in cash needs. A well-informed and communicative business owner will always be given extra consideration when business financial issues arise. Whether your cash needs are well known in advance or sudden, a banker who is well versed in your business will most always look more favorably on your business than those who are not.
John Dillard is a Christian Speaker/Author and Atlanta CPA (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life's 9/11's: Job's Journey and to learn about his ministry. To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304