Cashflow Analysis

Unless the business is well-funded to meet its obligations, new and small businesses are often cash strapped and don’t always have the means to timely meet them. Non-timely payments can result in late penalties, fines, bad relationships with vendors, legal issues, bad business credit, etc. Gary Mehta, CPA, EA, helps you optimize cash flow and saves you from the embarrassment of late payments and bounced checks. 

We analyze your business’s cash flow periodically (weekly, monthly, quarterly, etc.) and help you better understand the business’s cash needs. We can help your business strategize, so it has cash available to timely meet its payable obligations. Obligations that we plan for include salaries, rent, Purchases for Cost of Goods Sold, tax obligations, and other sunk debts that need to be maintained to keep the business financially steady 

We can help you understand your cash “burn” rate. Burn Rate is the rate at which your cash is used to meet these basic obligations. Factors that we consider when determining this rate include analyzing the following. 

· Accounts Receivable

· Accounts Payable

· Inventory

· Liquid and Illiquid Assets

· Short term liabilities and Long-term Debts 

· Discounts available for early payment of obligations

In the event of a cash shortfall, we can even assist clients in securing monies to meet these obligations. We work with partner financial institutions, private lenders, and investors that we can refer to when needed. We don’t receive any commission for these services and ensure to maintain our independence. Additionally, we perform assurance services to ensure both financiers and prospects are the right fit for each other. Our attestation service verifies the financial situation of our client to potential lenders and gives the prospect the best odds at attaining financing. 

For these services, working with a New Jersey CPA firm has its advantages. Among perks, a licensed accounting firm may have access to more trustworthy partners. We vet our partners to ensure they are reliable, trustworthy, and can meet our client’s needs. Additionally, we don’t receive any commission or referral fees from our partners, allowing us to maintain our independence and objectivity. Although located in Jersey City, we can meet you at any meeting location in Middlesex County, including Iselin, Piscataway, and East Brunswick. Our services can be provided in person at these locations or remotely.