We have all read the shock and awe headlines; and, if the reports are true surely the sky will fall atop my head as I type this letter. Fear and loathing aside – credit is tightening and cash flow is the name of the game. Just last week my office received a letter from our financial institution that read, “Important information about your Line of Credit ending in 7004: No future Advances Available.”

Okay – thanks, I didn’t see that one coming. Prayerfully, we continually strive to maintain sufficient working capital. Action begets reaction though and certainly we will be tightening the belts as we prepare for the coming tax season.

Enough about me — the purpose of this letter is to announce from atop the mountain that small business is in for a tougher year end planning season and winter that the main stream media is letting on. Banks require cash and are extending limited credit — to most I’m sure to be preaching to the choir, although there are many that disagree believing that the “Credit Crisis” is not real.

Regardless, the winter months are going to be tough on small business experiencing cyclical and seasonal difficulties. Family owned businesses can be especially burdened requiring greater communication and terms with slow paying customers. I agree and too struggle with collections as I am encouraged to maintain sound fiscal conservatism.  We are to be good stewards of our finances while being wise as serpents and gentle as doves.

Know that we are here to serve your business financial needs and assist in cash flow planning and profit analysis. We all need to plan for the cashflow of our business.

(Richard H. Veihl CPA, is an author and owner of Veihl Consulting Group, PC., a full-service accounting firm providing tax, accounting and business consulting services to small businesses. We welcome the
opportunity to discuss your planning and business considerations. )

Veihl Consulting Group, P.C.
Certified Public Accountant
1416 S. Gratiot Avenue
Mount Clemens, Michigan 48043
(586) 468-6611