Fergus Cleaver: Small Business Accounting is Vital During Cash Crunches

PHILADELPHIA, PA, October 04, 2012

According to a recent article from Fox Business, a majority of small businesses in America are reporting financial troubles in relation to cash crunches. The information, gathered from a Citigroup, Inc. survey, reveals that "about half of U.S. small business owners last month indicated they experienced a sudden cash crunch in the past year, despite slightly better business conditions." Another trend of payment leniency reveals that some financial decisions may be further impacting the limited cash flow. The article states, that roughly 78 percent of survey respondents said they had provided payment extensions to their customers. While some business owners believe such efforts are keeping their finances afloat, professional accountant Fergus Cleaver explains that, in most situations, help from a certified public accountant is necessary.

While customer nonpayment is a significant source of blame among business owners regarding recent cash crunches, the survey reveals that priorities remain varied. For instance, some small business owners are focusing on improving short-term sales performance in an effort to address cash flow problems caused by poor sales forecasting. In addition, 40 percent of survey respondents cite "lackluster consumer spending as a key issue." No matter what the true source of the collective financial trouble is, Fergus Cleaver explains that these business owners most likely require professional accounting services.

Fergus Cleaver explains that the varied reasons for poor performance indicate that owners are not paying enough attention to their business' accounts as a whole. Fergus Cleaver expands, "A shortage of cash in businesses is symptomatic of poor cash flow forecasting and planning. All too often business owners get buried in working in the business rather than working on the business."

Although the article notes that three-quarters of respondents believed they were "on top of" their finances, Fergus Cleaver explains that accountants are able to catch potential pitfalls ahead of time to avoid continued failure. In addition to helping business avoid financial risks, accountants are trained to manage revenue and expenses on a daily basis. While some business owners may feel reluctant to hand their finances off to another, Cleaver notes that the benefits are plentiful. Small businesses with certified public accountants can experience improved tax management, increased profit and greater workplace proficiency. Fergus Cleaver concludes, "Small business owners need to consult an accountant and take the time to step back and look at their business holistically and set meaningful goals. They will not reach their destination if they do not know what it is!"

ABOUT:

Fergus Cleaver is an accountant based in Auckland, New Zealand. Known for his service to both business and individual clients, he serves as the Senior Accountant at Cleaver Richards. At this firm, Fergus Cleaver assists in providing business and personal services, as well as tax guidance. An established professional within the financial industry, Fergus Cleaver understands the importance of personalized service and the fact that every client has unique financial goals and needs.

Website: http://ferguscleaver.net/