Ep 109 – Agency Cash Flow Simplified: How to Use Days Till Zero + Gross Margins to Avoid Crisis
Video from Agency Outsight. Watch on YouTube.
What you'll get
An accountant who sells finance services to agencies explains how to estimate how many days of cash you have left from your bank balance, planned spending and the deals in your pipeline weighted by how close each is to closing, and why to talk to your banker before you need a credit line. He also argues for tracking gross margin, which is gross profit divided by revenue, by project to find the few jobs that drag results down; the host is a coach for agency owners.
Do this week
Add your cash on hand to the payments you are confident of, subtract your weekly spending, and write the date your balance would reach zero if no new work came in.