Business financial management is very important to every small business.  Today, many small businesses cannot afford not to have a comptroller on site. Also, businesses cannot rely 100% on their accountant to manage every financial transaction of the business.  Even if you have an accountant, the main responsibility of the accountant is to perform limited tasks.  For instance, balance your accounts, prepare financial statements, and submit information to the Internal Revenue Service. 


What is the average daily balance?

If you want accountants to handle the business financial management of your business be prepared to pay more money per month.  Managing cash flow requires detailed analysis of how you spend money.  For example, when you pay, how to hold off payments, pending revenues, projections, and other details. 

Without a doubt, many businesses are going negative every month.  Negative does not mean that you close out negative at the end of the month. Most bank statements today have a “daily close out balance”.  Most business owners do not pay attention to this figure.  In fact, the daily average daily balance is one of the most important financial figures.  Indeed, this figure is very important because it indicates to you how many days you are positive and how many days you are negative.

In summary, next time you obtain your bank statement, look at the average daily balance.