The Importance of Cash Flow in Financial Management

As a business owner, you know the importance of cash flow but it’s not the only thing you have to manage. Your focus is constantly being pulled to other areas of the company that need your attention. You might feel like you are already stretched too thin and the last thing you want to do every week or month is sit down and track the cash flow in financial management. If you’re reviewing your cash flow while tired and overworked, one small misstep can cost your business money and even its ability to stay in operation. You can’t risk missing or misinterpreting cash flow data.

Cash flow in financial management is essential to budgeting your operations, financing, and investing activities. Tracking, analyzing, and reporting the business’s cash flow entails forecasting the amount of money that is coming in and going out. Cash is king and without it, a business cannot scale. Many businesses are turning to outsourced financial teams, like Clarisent, to work alongside you and act as your financial steward.

Analyzing Cash Flow

The analysis of cash flow in financial management provides a vital window into the company’s fiscal health. Having positive cash flow (more money coming in than going out) is just as important as profitability. It’s cash after all that pays the bills and fuels growth. If well positioned, cash flow wise, a business can sustain periods of negative cash flow. How long you can last before stuttering is dependent on your business’s health and its ability to generate a cash surplus. Owners, shareholders, and lenders all examine an organization’s cash flow to determine stability and long-term potential. Generating a surplus of cash is always the goal.

Successful business owners regularly forecast the amount of money available now and in the future. Forecasting requires an intimate knowledge of business patterns. The goal is to have enough cash on hand just when you need it. Sometimes that might mean liquidating investments, speeding up invoice collections, taking more time to pay bills, or tapping a line of credit. If the cash flow in financial management analysis reveals a persistent negative cash flow, immediate action is necessary to avoid financial disaster. If cash flow remains positive, then options for scaling are more numerous.

Conducting regular cash flow analysis also reveals whether sales will generate enough cash or if cash flow will need to be supplemented by a line of credit or other debt financing. With it, you can begin to predict the state of your business and identify potential issues before they hit. Remember, it’s possible for a business to be profitable, but be cash poor.

Improper management of cash flow can lead to the following problems:

• Inability to make payroll
• Late payments
• Damaged credit score
• Not scaling
• Unsuccessful cash flow surplus accumulation

At Clarisent, we set up a standard cash flow statement allowing you to calculate diverse types of cash flow across the spectrum to gain greater insights. We look for free cash flow (excluding non-cash expenses) and interest payments to better determine operating cash flow in your working capital.

We also educate you on the difference between levered and unlevered free cash flow and how to use this information to forecast the state of your business. Tracking and reviewing your company's cash flow helps with financial planning and lets you prepare not only for future quarters but years ahead for a potential downturn in sales or a shift in economic conditions.

We focus on keeping the money flowing by balancing your inflows with the company’s outflows. Our team also helps you collect money faster and ensures that your payments reach the right people and creditors.

Not having your fingertips on your cash flow management could be one of the many reasons your business is keeping you up at night.

Your business is telling you where it’s at this very moment.  Do you speak its language?

Every decision you make, every step you take in your business produces a result. They can be good ones, bad ones, and even neutral ones. Every single result shows up in your business as a number. Numbers are the language of business. It takes real experience and knowing how to speak this language to interpret what they mean. That’s what we do at Clarisent.

With over two decades of speaking numbers for businesses with $1-8 million dollars in revenue, often with complex accounting needs, our passionate strategy financial services team takes a compassionate front-view / rear-view strategic approach to financial stewardship and forecasting, and reaching financial goals. We provide affordable, outsourced bookkeeping, accounting, controller, and fractional CFO services for small and mid-sized businesses.

The most successful financial strategies for a business comes from a team that offers reliable support and peace of mind. We pride ourselves on being flexible and solving problems unconventionally. We are creative and strategic. Not often found with strategic financial services. Our focus is on the goals of our clients, not just the bottom line. We are about the lives that the numbers serve.

To us, success is not solely financial. It’s personal. It’s setting, tracking, and achieving life goals as well, Better relationships. Better health. Happy staff. Giving to causes that make the world a better place to live. Feeling fulfilled emotionally, mentally, and physically. All of these riches are possible as the CEO of your own business. We don’t just say they are possible. We are certain they can be achieved.

Clarisent Certainty Pyramid™


Strategic Planning
Revenue Growth
Profitable Decision Making
Stakeholder Management

Annual Strategic Financial Plan
KPI Development
Acquisition/Exit Planning


Strategic Planning

Revenue Growth

Profitable Decision Making

Stakeholder Management

Annual Strategic Financial Plan


KPI Development


Acquisition/Exit or M&A


Management &  Monitoring

Accurate Reporting

Deep Analysis

Internal Controls

KPI Management

Improvements & Recommendations

Cash Flow Management & Projection

Profitable Decision Making

CPA Support

Business System Check-up


Management &  Monitoring

Accurate Reporting

Deep Analysis

Internal Controls

KPI Management

Improvements & Recommendations

Cash Flow Management & Projection

Profitable Decision Making

CPA Support

Business System Check-up



Data Entry

Expense Management

Vendor Management

Data Entry

Expense Management

Vendor Management






Data Entry

Expense Management

Vendor Management



To accomplish this certainty and clarity yourself, you would need to be your own:

A ground-level day-to-day manager, categorizing all business transactions, handling bills and invoices, reconciling bank accounts, and preparing key monthly reports. Taking the daily, weekly, and monthly financial pulse of your business.


A highly focused specialist, compiling, analyzing, verifying, and preparing financial records. Creating documents to ensure lawful, efficient, and compliant business practices and making sure you are ready for taxes.


A high-level strategic manager overseeing all financial tasks and reporting procedures. Supervises and guides your bookkeeper and accountant.


A highly experienced, specifically skilled leader responsible for tracking cash flow, financial planning, analyzing your business’s financial strengths and weaknesses, and proposing strategic directions.

Every one of these roles offers a unique and critical vantage point that supports you and your ability to make decisions to grow your business. How can you expect to take on each of these critical roles and still be able to lead from your strength? Which is your big vision. Honestly, you can’t.

It’s no wonder you are:

  • Making bad decisions due to unusable information
  • Frustrated with your bookkeeper
  • Worried about making payroll
  • Making wrong turns
  • Experiencing stagnant growth, or worse, going backward
  • Unable to seize opportunities when they arise
  • Losing money despite it coming in
  • Losing excitement for your business
  • Sacrificing your physical and emotional well-being
  • Losing your faith and confidence
  • Losing sleep at night

Why our clients sleep well at night

These are the 7 crucial financial factors Clarisent always has it’s eye on to ensure that you maximize your financial decisions:

Profitability Dynamics

If you are unaware of your inventory, manpower and operating expense details, you can miss important profit dynamics. With Clarisent looking deeper at your cost structures, you can consolidate vendors, reduce product costs and reduce shipping and labor costs with an eye to increasing your margins. This factor can result in thousands of dollars in potential savings or operational efficiency that goes directly to your bottomline.

Vendor Oversight

Vendor Oversight

You can trust that with Clarisent, money flows to keep your business humming. We work to balance your inflows with your outflows so you don’t face temporary deficits. We help you collect money faster and ensure that payments are made to the right people at the right time.

Proactive Financial Reporting

Don’t spend valuable time each month forecasting sales and income projections, thumbing through tax forms or creating expense spreadsheets. Clarisent can save you time and money through proper preparation, organization and month summaries of all key performance indicators, including:

Marketing Performance
Financial Account
Cash Flow

On-Demand Insights

A detailed chart of accounts and accurate reporting maximizes your productivity, gives insight for better planning and builds trust with shareholders, investors and creditors. With proper procedures, you can rely on the financial data that we provide. Clarisent’s full service clients enjoy our near real time ClearView Dashboard™ complete with insights and recommendations that will help you make smarter business decisions. On-demand fractional CFO support calls are included as well.

Profit Expansion

It’s not enough to know what you did in the past. It’s also important to look forward based on the past and see what’s coming in the future. Successful businesses use profit and cost centers to monitor their activities and manage cash flow. Clarisent clients use our proven financial systems to illuminate what they should do next.

Key Performance Indicators

Key Performance Indicators (KPI) measure key business drivers and the correct focus is placed on performance, strategic planning and operations. Clarisent provides you with a personalized ClearView Dashboard™ so you can make better financial decisions.

Financial Strategy & Support

A business is only as successful as the team they have in place. Clarisent provides navigation, strategic planning and results-driven advice to their clients at the fraction of the cost you may pay to hire a CFO.

Back to where you are right now. Big vision, flying blind, and not sleeping because you are unclear where your business is financially today.

Wouldn’t it be better if you:

  • Have laser clear and highly usable data from your business so that you can make better decisions every time?
  • Have trackable financials that clearly aligned with your goals and vision?
  • Have a precise snapshot of your cash flow at your fingertips?
  • Can predict your business’ future despite uncertain times?
  • Have an open door to capital and financial growth and protection tools so that you can take advantage of opportunities when they arise?

All of this is yours today for free.

Is your business keeping you up at night?

By now, you know that owning a financially stable business has 100% nothing to do with just earning money. If it did, you’d already be celebrating at the top of the mountain. We want to support you to get there.

When you know exactly where your business is financially, beyond the revenue that you are working tirelessly to generate, beyond barely making payroll, beyond juggling to pay your bills on time, you have priceless intelligence to make every decision 1,000% more trusted and reliable.

When you truly understand where you are on the path to a financially healthy business, you become a clear and trusted leader in your business. When you’re a clear and trusted leader in your business, you inspire trust in your employees and vendors, you are able to grow faster, you establish more value in your business, you can sell it or hand down a legacy for your family, and you’ll have the freedom to have a life again.

We created the Financial Foundations Guide to show you the 5 essential steps to take to know exactly where your business is at today so that you can reliably grow it and sleep well at night.

The Financial Foundations Guide is a complete yet quick-to-understand approach to developing a financial foundation you can rely on. It includes;

  • An illustrated reference guide to cut through the confusion of identifying the exact step you need to take based on the problem you are currently facing with your finances and shows you the holes in your financial strategy for business.
  • A simple, yet effective, method for getting a clear snapshot of where you are.
  • An illuminating in-depth email series going into detail about each of the 5 most crucial steps to take now to develop a firm financial foundation to reliably grow your business.

You’ll also receive

  • A BONUS: 20-minute one-on-one ClearPath™ strategy call to specifically address the most immediate problem that is keeping you up at night and help point you in the direction of developing the financial business strategy that’s right for you.

This FREE clarifying guide will show you the exact five most critical steps to take as a big vision entrepreneur to know exactly where your business is currently and the specific thing you need to focus on based on the specific problem you are facing right now. Even if you’re already earning 2 million dollars, knowing these time-tested steps will make a profound difference in your ability to lead, grow, and sleep well at night.

Happy CEOs

“Clarisent has been a critical success factor ....”

“Clarisent has been a critical success factor in our growth from a sole proprietorship to a larger international joint venture business.”

Sabine Amend, TI Communications USA

“As a small business owner, prioritizing my ....”

“As a small business owner, prioritizing my time is critical. After years of looking for a quality bookkeeping service, Clarisent has stepped in and taken control of a crucial piece of the business which allows me to focus on growth.”

Guy Peters, Mop Stars

“Clarisent has given me the tools and  ....”

“Clarisent has given me the tools and support I need to start my new business. I can tell they really care about helping us!”

Paula Devillier, Focus Construction

“Clarisent has been such an amazing  ....”

“Clarisent has been such an amazing resource to my firm and my only regret was not finding them sooner! I have more clarity with my finances, my books are much more organized, and most importantly, I can spend time on revenue-generating activities for my business instead of attempting to run my own books! It was simply costing me more to NOT have them, so their fees are an investment and in return I get my time back. I’ve already referred many others to Clarisent and will continue to do so. I highly recommend their services.”

Steven Harp, Colorado Wealth Group

“Clarisent worked directly on the financial....”

“Clarisent worked directly on the financial projections for a launch and scale of a large organization that I created. Clarisent was effective in working with the team and contributed valued input that went far beyond the industry standard and into our thinking process. The result strongly impacted the ultimate success of our strategic plan. Clarisent is a highly professional CFO Service firm that I recommend.”

Mark Borough, Borough Wealth Management, LLC, Managing Partner, Spiritual Capitalist association, Chairman

“Knowledge of how all the pieces of a  ....”

“Knowledge of how all the pieces of a business works is truly difficult to find from CPAs and other Financial Professionals. Clarisent not only had the financial knowledge, but they asked the right questions and presented excellent alternative approaches to solving business problems. I wouldn’t be where I am with my business without them.”

Jeff Gibbs, CEO, Clearstone Sports

“Clarisent is more than an accounting ...”

“Clarisent is more than an accounting service, they provide financial leadership to my organization and I view them as a strategic partner in helping to grow our mission of advancing women in business.”

Kristen Blessman, Colorado Women’s Chamber of Commerce

“I met Clarisent at a time of great transition,...”

“I met Clarisent at a time of great transition in my business and was needing an overhaul of my financial management systems that, at the time, were a mess. My bookkeeper had made many mistakes that were costing me money, and my vendor relationships were mismanaged. Clarisent was able to very quickly and skillfully analyze my business, make sense of the problems, and then go on to recommend viable, effective solutions unlike any financial consultant had ever offered. I was so impressed I immediately hired Clarisent to provide CFO services for my small business. It has now been 14 years of working together and I can’t imagine running my business without him! Clarisent has consistently saved my business money in a number of areas, has transformed our financial management to be a seamless process, manages vendor relationships with utmost professionalism, and provides me meaningful, insightful reports that allows me to know exactly where my practice is at any given time. Beyond that, Clarisent has the uncanny ability to ask the questions most people would never think to ask regarding financial strategy, and is consistently supportive in innovating and improving our business practices. I appreciate that Clarisent always shows up with the highest integrity, and have come to really lean on him for support and clarity; his services are integral to my business. I unreservedly recommend Clarisent for CFO services for any business!”

Todd Nelson, CEO, Tree of Life Wellness Systems

“I am SO glad I met Steve Breitman! ,...”

“I am SO glad I met Steve Breitman! His service has saved me HOURS and HOURS of work in an area I don’t know much about and don’t want to. Taxes are a cinch to do now. That is priceless. Everything is set up properly for my corporate records and that peace of mind is significant. Thank you Steve and Clarisent!”

Jayne Sanders, CEO, Hands to Success

Clarisent has provided bookkeeping  ...”

“Clarisent has provided bookkeeping services to my company, Sunshine Sciences, for several years. They’ve made preparation of my sales tax returns a snap. I also love that they are patient and great teachers.”

Linaya Hahn, CEO, Sunshine Sciences

“The ability to outsource our bookkeeping ....”

“The ability to outsource our bookkeeping and accounting consistently saves hours in time and – consequently – money! By freeing us up so that we can focus on our core competencies, Clarisent has become a truly valued partner for our business”

Lindsey James-West, LKJ Financial

“Clarisent is always ready to proactively  ....”

“Clarisent is always ready to proactively create a new system or retroactively solve a problem for their clients. It’s good to know they’ve got your back.”

Matt Tatusko, CEO TrueSight Media

“Clarisent is my true partner in the growth ....”

“Clarisent is my true partner in the growth and development of my law firm. For the first time in my business life I can effectively plan and execute on our growth because, thanks to Clarisent, our books are always up to date, cash flow is clear and I can project revenues in a reliable manner. Thank you Clarisent for peace of mind that lets me sleep well at night.”

Tom Jurgensen, Optima Law Group

“I have worked with Clarisent for a few years ....”

“I have worked with Clarisent for a few years now and would highly recommend them. I can always count on them to get back to me the same day, if not the same hour. I have delegated all of my bookkeeping to them which allows me to focus on the growth of my business. Clarisent is very helpful and always puts in the extra time needed when necessary. Clarisent gets two thumbs up from me.”

Dr. Keppen Laszlo, Executive Director, Discover Health and Wellness

“Our tax accountants and bankers have ....”

“Our tax accountants and bankers have been very impressed by the quality of our financial reports created by Clarisent. Clarisent’s high service level is always evident in the deliverable.”

Lynn Coit, CEO, Elsy Studios

There’s a clear path to financial business strategy.

So you see, this lack of knowing where your business is financially isn’t just you. It’s not your fault. It’s the by-product of operating from your big vision. You need that. It’s your strength. It’s also your responsibility to get the reliable support you need to steer, lead, and grow your business.

Wouldn’t it be great to:
Feel the excitement in your business again?
Have peace of mind knowing that your business is actually heading in the right direction?
Spend quality time with your family again?
Have the freedom to take care of yourself physically and do the things that brought you joy personally?
Give to causes that you believe in?

With our FREE Financial Foundations Guide, you’ll

  • Clear away the worry if you’ll be able to make payroll.
  • Remove the life-draining confusion of not knowing exactly where your business is
  • Know the exact financial framework that our clients follow to reliably grow their 1+ million businesses.

With these 5 steps, you’ll:

  • Know the exact tools you need set up for financial success and reliable reporting so that you don’t waste your time and valuable resources.
  • Plot your specific path to reliable financial growth so that you know at any moment if you are heading in the right direction and how to course correct if you are not.
  • How to accurately determine if you have the money you need to operate your business, pay your bills, and confidently allocate for growth opportunities.
  • Know exactly where your business is at every moment by having your fingertips on its financial pulse in real-time and how to customize the data to your specific industry.
  • Have access to capital when you need it and the right financial tools to grow.
  • Establish a firm financial foundation underneath you so that you are supported to lead with your big vision and know that you can actually reach the summit that you know you are capable of reaching.

We sincerely thank you for your courage to stop the confusion. It’s an honor to share our financial leadership experience with you and show you the 5 essential steps to establishing a solid financial foundation for your business.

Download your FREE copy of our Financial Foundations Guide today.