Cash Flow and Your Business: Real Talk from a CPA’s Perspective

Running a business is tough enough without the constant stress of wondering where your money went. If you’re like most entrepreneurs, you've probably had a few sleepless nights asking yourself, “How did I spend that much this month?” Cash flow management might not be the most exciting part of entrepreneurship, but it's the backbone of a healthy business. And honestly, if you ignore it, things can spiral fast.

On a recent episode of Never Been Promoted, Ryan Page, CPA , the founder of Backpocket CPA , shared some really down-to-earth insights about managing business finances. Ryan doesn’t come at you with high-level jargon or fancy accounting lingo—he talks about what works, what doesn’t, and how to actually get control over your cash flow without losing your mind. If you're a small business owner looking for straight-up, practical advice, keep reading.

1. Budgeting: Not Just a Personal Finance Thing

Let’s start with the basics. A lot of business owners assume budgeting is just something you do for your personal expenses, but Ryan is quick to correct that thinking. “Most people don’t realize how important a business budget is,” he said. “It’s how you keep control of your money.”

The trick is assigning every dollar a purpose. Ryan suggests using a tool called You Need a Budget (YNAB), which helps you plan and track your business expenses. The goal here isn’t to just save money—it’s about having a clear picture of where every dollar goes, so you don’t accidentally overspend. “It’s not rocket science,” Ryan added. “When the money comes in, know exactly where it’s going.”

2. Taxes Aren’t the Big Deal—Cash Flow Is

One thing that might surprise you: Ryan isn’t big on stressing over taxes. Of course, you need to file and pay your taxes, but that’s not the part of your finances that’s going to make or break your business. Instead, it’s all about how you’re managing your cash flow month to month.

“A lot of people just focus on getting their tax returns done, but that’s not where they should be focusing their energy,” he said. Cash flow is what determines whether you’ll have enough money to pay your bills, employees, and yourself—so it's crucial to stay on top of it. Ryan’s advice is simple: look at your cash flow regularly, break down where it’s going, and address issues before they become problems.

3. Deductions Won’t Save You

You’ve probably heard entrepreneurs talk about how important tax deductions are for a business, but Ryan is pretty clear on this: “Deductions are great, but they’re not going to save you if your cash flow is a mess.”

If you're counting on tax deductions to keep your business afloat, you're likely overlooking bigger financial issues. According to Ryan, what most businesses need is a real look at their spending and where they can cut back—not a tax trick. “Instead of focusing on how to write off more expenses, ask yourself what you can actually cut back on,” he advised.

4. Keep Your Business and Personal Finances Separate

This one’s a biggie, and it’s where a lot of entrepreneurs get into trouble. “You’ve got to keep your business and personal finances separate,” Ryan stressed. Commingling funds—using your business account for personal expenses or vice versa—is one of the fastest ways to create confusion in your books and potentially land yourself in hot water with the IRS.

Ryan pointed out that not only does this make managing your business more difficult, but it also opens you up to legal risks. The key? Pay yourself properly through a salary or distribution and keep personal expenses out of your business accounts. “It’s not hard,” he said. “Just keep things clean, and you’ll save yourself a lot of headaches.”

5. Do Your Bookkeeping Regularly

Let’s face it—bookkeeping isn’t fun for most people. But Ryan made a great point during the conversation: bookkeeping isn’t something you can afford to push to the side. In fact, he recommends reviewing your books every week if possible.

“A lot of small business owners only look at their books when they absolutely have to, like during tax season or when something’s gone wrong,” Ryan said. But keeping up with bookkeeping regularly allows you to spot problems early, like unnecessary spending or cash flow gaps. “Don’t let your books become something you dread,” he added. “Get in the habit of looking at them often, and it’ll save you a ton of stress in the long run.”

Conclusion: Take Control of Your Finances

Ryan Page’s approach to business finances is straightforward: get in control of your cash flow, keep your books clean, and don’t wait until tax season to get things in order. He doesn’t promise any shortcuts, but if you’re willing to put in the effort, these practical steps can make a huge difference in how you run your business.

Want to hear more about Ryan’s advice and how he helps business owners take control of their finances?

Be sure to check out the full episode HERE! 

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