Amira Irfan’s Post

Poor cash flow management is behind 82% of small business failures, with over 10% turning to credit cards for emergency funds monthly in 2023. With rising costs and mounting challenges, ensure your business's long-term financial stability with these six steps.

Poor cash flow management is behind 82% of small business failures, with over 10% turning to credit cards for emergency funds monthly in 2023. With rising costs and mounting challenges, ensure your business's long-term financial stability with these six steps.

Poor cash flow management is behind 82% of small business failures, with over 10% turning to credit cards for emergency funds monthly in 2023. With rising costs and mounting challenges, ensure your business's long-term financial stability with these six steps.

Poor cash flow management is behind 82% of small business failures, with over 10% turning to credit cards for emergency funds monthly in 2023. With rising costs and mounting challenges, ensure your business's long-term financial stability with these six steps.

Poor cash flow management is behind 82% of small business failures, with over 10% turning to credit cards for emergency funds monthly in 2023. With rising costs and mounting challenges, ensure your business's long-term financial stability with these six steps.

Poor cash flow management is behind 82% of small business failures, with over 10% turning to credit cards for emergency funds monthly in 2023. With rising costs and mounting challenges, ensure your business's long-term financial stability with these six steps.

Ever wonder what your business's real financial health looks like? Spoiler alert: It’s hiding in plain sight on your balance sheet. 📊 This single document holds the key to understanding whether your business is coasting along smoothly—or heading straight for trouble. And if you don’t know how to read it, you’re basically operating blindfolded. Here’s how it works: What makes up a balance sheet? Your balance sheet is made up of three major components: 👉 Assets (what you own): Think cash in the bank, inventory, office equipment—anything with value that belongs to your business. 👉 Liabilities (what you owe): This includes business loans, credit cards, and other debts weighing on your business. 👉 Equity (what’s left after covering liabilities): This is your stake in the business—retained earnings, owner’s distributions—basically, what belongs to you after the bills are paid. Why is the balance sheet so important? It’s a snapshot of your business’s financial position at any given moment. Curious how your business was doing last year? Your balance sheet will tell you. It’s like taking a picture of your finances on that exact day. How can you use your balance sheet? This document doesn’t just sit pretty on your desk—it tells you if your business is financially healthy. Here’s a quick example: Let’s say you’ve got $500,000 in liabilities but only $200,000 in assets. 🚩 That’s a red flag, signaling that you’re carrying way more debt than you can cover, and it’s time to rethink your strategy before things spiral out of control. The balance sheet is your early warning system. It shows whether you’re building something sustainable or digging yourself into a financial hole. Ready to take a deep dive? If you’ve been ignoring your balance sheet, this is your sign to stop. Knowing these numbers gives you the power to make smarter, faster business decisions. If you’re feeling stuck or unsure how to use this info to your advantage, let’s talk. Together, we’ll make sure your business is set up to thrive, not just survive. 💪

Business bankruptcy can often be avoided with the proper knowledge and planning. The article below discusses essential cash flow management tips, debt handling, and more to keep your business thriving. #BusinessTips #FinancialHealth #SmallBusiness #JArthurFinancial https://lnkd.in/gU_83Nky

The Overlooked Risk of Co-Mingling Business Funds Many entrepreneurs know to keep personal finances separate from business. But here’s where many folks slip up: keeping each business separate from the others. It might seem harmless—they're all your businesses, right? Not so fast. Each business is its entity with its own financials, bank account, and unique identity. Combining funds, even between two businesses you own, leads to: 🔸 Legal Vulnerability — Mixing funds blurs the legal lines, risking personal liability and making it easier for creditors to target all assets if one business faces trouble. 🔸 Tax and Financial Headaches — Untangling co-mingled finances during tax season is costly, time-consuming, and a red flag to the IRS. 🔸 Confused Business Health — Keeping track of each entity’s financial performance becomes impossible with crossed accounts. Best practice: Set up separate bank accounts for every business you run, and treat each with its financial discipline. Keeping everything clear and separate strengthens your protection, boosts financial clarity, and keeps your growth solid. If you’re uncertain whether your finances are separated correctly, contact us. Keeping your business protected starts with a strong financial foundation.

Navigating economic and political uncertainty can be challenging for small businesses. With rising inflation and fluctuating costs, it's crucial to be both disciplined and adaptable in your financial management. Discover 5 essential strategies to ensure your business not only survives but thrives during these turbulent times! Read our latest article to learn how to position yourself for growth! #SmallBusiness #FinancialTips #GrowthMindset