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Tom Meaglia, ChFC®, AEP®, CLU®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

CA Insurance Lic. #0567507


Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750


Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120




July/August 2021

The Importance of Managing Cash Flow

The Importance of Managing Cash Flow

Successful cash management is the first step in having sufficient funds to meet your business's financial obligations. Cash planning allows you to add inventory, expand to new locations and take additional steps to grow your business. It requires the attention and expertise of everyone on your management team.

Providing a Snapshot
Your business's cash-flow statement is an important document. It records the cash coming in (inflows) and cash going out (outflows), including cash from operating activities, financing activities, and investing activities. The bottom line of the statement shows how much cash is available to the company. It's a good place to start your planning.

Maximizing Available Cash
Having as much cash on hand as possible should be the goal of managing cash flow. You can accelerate collections by encouraging the use of electronic payments and credit cards and by offering customer discounts for prompt payment. Postpone cash outflows by delaying payment to vendors for as long as possible to keep more cash in house. Implementing a purchasing plan can help prevent your business from holding too much inventory without receiving payment for it and thus tying up cash in unsold goods.

Having Adequate Insurance
Business insurance protects you from financial loss due to accidents, natural disasters, product defects, and lawsuits. You can purchase separate insurance policies that provide specific coverage for each type of loss, or you can buy a business owners policy that combines all coverage options into one bundle. Combining coverage is typically less expensive. Business owners with a home-based business who may not need such extensive coverage can have a rider added to their homeowners policy that offers protection for a small amount of business equipment and liability coverage for third-party injuries.

Coordination is Key
Maintaining close relationships with your financial, legal and tax professionals can provide you with the guidance needed to keep your business running smoothly. Financial and tax planning are essential activities for the small business owner. Having the guidance of professionals can lend an unbiased perspective to your endeavors and help you better manage your business's cash flow.


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Investment advisory services are offered through Fusion Capital Management, an SEC Registered Investment Advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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