Episode 87: The Cashflow Waterfall - Why Profitable Businesses Still Run Out of Cash

It's one thing to know how much cash you need, but another to understand how that cash needs to flow throughout your organization.In this episode, Marcus Crigler shares a simple method he created that you can use in your business to not only store cash but also do so efficiently.Listen as he breaks down the Cashflow Waterfall, a simple system for managing where your money goes so you can stay ahead of expenses, taxes, and unexpected cash flow problems.Enjoy the show!You’ll Learn How To:Set up the three accounts in the Cashflow Waterfall systemKnow how much cash to keep in your operating accountBuild a reserve account that acts as your business safety netCreate a more disciplined system for managing business cashWhat You'll Learn in This Episode:(01:46) A simple method to efficiently and effectively store cash(02:05) The Cashflow Waterfall and the three-account system(02:49) Operating account: Built to house day-to-day activity(03:17) Tax savings account: Should be based on profits, not revenue(03:56) Reserve account: The safety net making money(04:18) Two times your fixed expenses in the operating account(05:40) How to manage the tax savings account month by month(06:21) What types of bank accounts to use(08:35) The order of operations for the Cashflow Waterfall(11:41) Financial discipline to get yourself ahead of the majority of competitors(12:10) The reality of using tax funds during a difficult periodWho This Episode Is For:Business owners who are struggling with cash flowReal estate entrepreneurs who want control over their numbersAnyone who is living deal by dealWhy You Should Listen:This episode gives you a straightforward system for making sure your cash is going where it needs to go and that you have money available when your business actually needs it.Connect with Marcus Crigler:Website: https://beccfo.com/LinkedIn: https://www.linkedin.com/in/marcus-crigler-cpa-977a45b7 Facebook: https://facebook.com/marcus.crigler