Ep. 022 Interview Series: David Safeer on How to Uncover the Real Problem with Cash Flow Issues

Business Breaks - All Things Business

Summary

Join us in this episode as we dive deep into the world of cash flow management, and learn the myths, mindsets, and strategies to master cash flow for your business success.
David highlights that cash flow issues are generally an emotional issue and require behavioral-based processes to overcome them. He recommends communication as the key to getting the message across and suggests using plain English for easy understanding.

Key insights:

• Managing cash flow is crucial for any business, and it's not just about historical data but also about commercial awareness, sales, marketing, and predicting the future.
• A mindset shift is needed to move from accrual-based accounting reports to cash-based reality.
• Safeer has created a system with six pillars to teach accountants how to help their clients with cash flow problems. The first pillar is mindset, which is the most critical issue.
• Bookkeeping is essential for understanding costs, margins, and predicting cash flow in the future.
• Traditional accountants who are trained to think and behave in a certain way need to change their mindset to master cash flow management.
• Communication is the key to getting the message across, and using plain English for easy understanding is crucial.
• Identifying the right KPIs is critical for any business, and vanity metrics can cause cash flow problems.
• Cash flow issues are generally an emotional issue and require behavioral-based processes to overcome them.
• Financial discipline and scrutinizing investments and short-term discretionary spending are essential for managing cash flow.
• While fintech is great, there are no silver bullets, and financial discipline is essential to solve cash flow problems.

Connect with David:

Cash is Clear YouTube channel:
Cash Is Clear - YouTube

Cash is Clear:
Cash management for businesses owners that want to grow their business (davidsafeer.com)
David Safeer's LinkedIn profile:
David Safeer | LinkedIn

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