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Does Your Business Cash Flow Have You in Shock?

by David Huff on December 6, 2011

Business in Shock over cash flow?Are you in âہ“shock” over your business’s cash flow? Are you wondering,âہ“What do I do with too much cash?” or âہ“How do I make MORE money?” Experienced professional accountants can help you overcome the shock!

In a medical situation, treating for shock includes the lifesaving steps of providing food, rest and encouraging words.In business,shock treatment includes analyzing gross profit margins. You must compare your gross profit margins to those of a similar business to see how strong you are in your marketplace.

Generally, profit margins that increase over time indicate high levels of customer satisfaction and efficient product delivery. Decreasing margins, can be caused by a number of factors including reduced sales price on products, increased cost on inventory or a bad economy.

Gross profit margin can only be improved in one of two ways:

1. Increase selling price
2. Decrease cost of sales

To find out how to improve your profit margin, contact Person Huff CPA Group today to schedule a 5-point Profitability Check Up.


David W Huff, CPA, PFS, MS is a partner at Person Huff CPA Group. He provides clients with tax preparation and consulting services, accounting services, retirement plan and benefit consulting, accounting software technical support and training, and management advisory services. His specialty is helping new businesses organize their operations to maximize tax savings and move quickly from start-up to profitability.  You can reach David by email at: david@personhuffcpa.com

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