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GrowCon Spotlight: David Safeer Gives Cash Flow Strategies that Actually Help

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GrowCon Spotlight: David Safeer Gives Cash Flow Strategies that Actually Help

20240506 135732
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Early in David Safeer’s career as a business advisor, he received an assignment in rural West Virginia to meet with a man named Wally, who owned and operated a landscaping company.

Wally’s operation was small. He only had a few employees. One of his daughters kept his books each month.

When Safeer arrived to meet with Wally, he was greeted with a profit and loss statement. Wally reported that the business had made $250,000 in profit last year. And yet, he wasn’t sure he’d be able to make payroll a few weeks later.

This interaction ingrained in Safeer the devastating consequences of poor cash flow. It sent him on a journey to see what can be done with business owners in Wally’s position: their operation is profitable, but on the brink of closing because of cash flow.

Safeer shared Wally’s story and how he helped save his business during his presentation at GrowCon, the premier in-person event for owners of accounting, bookkeeping, tax preparation, and advisory businesses. This year’s version of the conference was held at the Southbank Hotel in Jacksonville, Florida, on May 6 and 7.

As we work on preparations for the GrowCon 2025 at the Utah Valley Convention Center in Provo May 5-7 next year, let’s take a moment to dive in to Safeer’s presentation on how business owners can sort the wheat from chaff when it comes to cash flow solutions. Check out the highlights from other speakers at GrowCon 2024 here.

The Illusion of Profitability

As the founder of Cash Is Clear Learning Systems, David Safeer is intimately familiar with most common strategies for fixing cash flow that you might encounter online.

Online blogs and influencers may recommend that cash strapped business that “You are in control.” They just need to “Focus on the short term”, or “Fix the problem with more sales.” The problem with many of these articles, Safeer noted in his presentation, is that the solutions they offer for cash flow woes are often counterintuitive.

There is no silver bullet or one size fits all solution to address the cash flow symptoms a business might be manifesting. “Focusing on the short term” may actually deepen cash flow issues in the long term, for example.

As Safeer mentioned in the example with Wally, many of the businesses with the most severe cash flow problems whom Safeer has worked with are actually profitable operations according to their profit and loss statements.

“Cash flow management will take mindset changes,” Safeer said. Good cash flow advisors see themselves as mentors, whether they’re working with the CEO or the accounting department.

Safeer has coined a four step process for teaching these principles at Cash is Clear: Model, Manage, Mentor, and Maximize.

Treating More than the Symptoms of Cash Flow Troubles

Among the most pervasive myths sold to accountants for addressing cash flow is the idea that “You are in control,” Safeer said. In almost every case, the accountant is not in control — the clients, the vendors, and the bank have the final say when it comes to most cash flow strategies.

Understanding the concentrated, company wide effort it takes to improve cash flow is crucial. That’s why Safeer emphasizes the change in mindset.

When companies turn to Safeer for help, their options are typically fairly limited. They’ve already taken out numerous loans and have maxed out their credit cards. The first priority in these situations is to build a reserve, Safeer said.

One potential piece of low hanging fruit in these situations is to move on from what Safeer called “loser clients.” Some clients demand so much attention and resources that maintaining the relationship can weigh on the cash available of the business.

The Perils of Rapid Growth

Even companies that are thriving can face cash crises, especially during periods of rapid growth, Safeer said. This paradoxical situation calls for a heightened emphasis on cash management in corporate decision-making. It’s not enough to be profitable; businesses must also ensure they have the cash flow to support their growth and operational needs.

This phenomena is due, in part, to the traditional emphasis on accrual accounting that is taught at most colleges and universities.

This theoretical approach may not fully equip small businesses to handle real-world cash flow challenges, Safeer noted.

The broader business culture also tends to neglect cash flow until it’s too late. Effective cash flow management should be integral to every business strategy, advocating for robust accounts receivable systems and maintaining healthy cash reserves.

Strategies for Improving Cash Flow (that actually work)

To navigate cash flow challenges, Safeer recommends employing several strategies:

  • Early Payments: Despite the traditional advice some advisors may tell you about waiting as long as possible to pay bills, offering to pay bills early can often allow you to negotiate favorable terms with suppliers. This might be slightly uncomfortable for your clients, but it pays huge dividends in the long term.
  • Eliminate Unprofitable Clients: This might seem counterintuitive, but shedding clients that drain resources can significantly improve cash flow.
  • Utilize Third-Party Credit Options: These can facilitate quicker payments and better cash management. Oftentimes third party creditors are willing to step in and give your clients some breathing room when cash is extremely tight.
  • Explore New Opportunities: Diversifying revenue streams can buffer against cash flow shortages.

Financing receivables is another viable option to facilitate immediate cash flow. While there are numerous documented tactics for enhancing cash flow, it’s important to recognize that not all will yield immediate results. But what’s important is the long term sustainability of the business, Safeer noted.

“Accounting looks backwards, and we need it, but when it comes to looking forward, it’s all about cash flow,” he said during his presentation.

A Call to Action for Small Businesses

The overarching message is clear: focusing on cash flow is not just a good practice—it’s essential for future business success. Especially for small businesses, understanding and managing cash flow can mean the difference between thriving and merely surviving. By adopting a proactive approach and utilizing a range of strategies, businesses can navigate cash flow challenges effectively and secure their financial future.

Remember, profitability might be the goal, but cash flow is the lifeblood of your business. Make it a priority, and watch your business flourish.

Before we wrap things up, let’s take a quick moment to review the key concepts from Safeer’s presentation:

  • Many of the most popular cash flow “solutions” can actually lead to more severe issues for entrepreneurs. There are tons of articles online that offer misguided advice, Safeer said. They claim that “Cash is King,” and recommend focusing on the short term, paying bills and debts as late as possible, and relying on sales to fix the problem, among others.
  • Instead of falling into these traps, Safeer recommended getting rid of “loser” clients who may be dragging the business down. He placed a high priority on paying debts early because many companies will offer a discount for doing so. Relying on sales to fix the problem can fall flat on its face because it often doesn’t impact the margins enough.
    “Accounting looks backwards, and we need it, but when it comes to looking forward, it’s all about cash flow,” Safeer said.
  • Safeer noted that many of the companies who shutter due to poor cash flow are actually profitable at the time of closing. The culture of only prioritizing profits and quarterly results can pull the rug out from successful companies.

Access David’s Full Presentation (and the other 13 presentations) from GrowCon 2024

The tips shared in this article are truly the tip of the iceberg when it comes to the amount of game changing insights that presenters shared at GrowCon. Each speaker shared valuable insights for running an accounting business, from building wealth, optimizing the day-to-day processes of the business, and beyond.

Fortunately, you can access the full collection of presentations virtually for just $197. Purchase the complete list of presentations at both days of GrowCon at this link.

And remember that GrowCon 2025 will be held from May 5 to 7 at the Utah Valley Convention Center. Marriott Provo will be the host hotel for the event.

To learn more and register for this can’t miss event for owners of accounting businesses, follow this link.

The lineup of speakers will include experts in tax planning, business development, and client advisory services. Check out highlights from previous GrowCons for free here.

Looking Ahead to 2025

Thank you to all of the speakers who shared their incredible insights at GrowCon 2024 in Jacksonville, Florida. We are extremely excited for GrowCon 2025 in Provo, Utah.

To learn more about how you can start your own accounting business, improve your services, or train your employees, call Universal Accounting at 435-344-2060. Or schedule a time to discuss your future online using this calendar:


author avatar
Connor Sanders

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