Quote of the Month:
“Financial Freedom is less about financials and more about freedom.” ― Manoj Arora
Tax Tip of the Month
The IRS recently reminded taxpayers that filing and payment deadlines still apply even during a federal government shutdown. The agency will continue to accept payments, but refunds and paper processing can be delayed until operations resume.
Even if your profit is steady, a delayed refund or processing lag can tighten your available cash. To stay in control:
- File electronically and choose direct deposit to avoid refund delays.
- Keep a cash reserve to cover at least 1–2 months of expenses in case expected funds don’t arrive on schedule.
- Use your cash flow forecast to plan around potential government or banking slowdowns
Finance Tip of the Month
Before following tax or financial “hacks” you find online, ask:
1. Does this align with my actual situation?
2. Have I validated this with my accountant or advisor?
At Red Bike Advisors, we turn hype into hard data. Real strategy isn’t built on trends, but on truth.
Your Breakaway Growth Navigator
Last month, we helped you track the benchmarks behind profit, efficiency, and growth.
This month, we’re focusing on something even more fundamental: cash.
Because profit looks great on paper, but cash keeps your business fit and strong.
You can have a healthy P&L and still struggle to make payroll. That’s because timing matters. Receivables, debt payments, and large expenses all impact your bank balance, even when your profit looks solid.
At Red Bike Advisors, we help clients build financial systems so they can make bold, strategic decisions with confidence instead of fear.
Your Cash Flow Forecast
A cash flow forecast is your financial GPS. It shows how much money is coming in and going out over time. It doesn’t need to be complicated—a simple spreadsheet works.
Track:
- Incoming cash: invoices, client payments, loans
- Outgoing cash: payroll, rent, taxes, debt payments
This forward view helps you spot dips before they happen—so you can plan, not panic. Even if you’re not a “numbers person,” this visibility brings peace of mind
The 3-Part Cash Plan Every Business Needs
- Working Capital Cushion: Keep 2–3 months of operating expenses in reserve. It gives you breathing room during slow periods or when big opportunities arise.
- Cash Flow Forecast: Track your inflows and outflows at least monthly. Anticipating a shortfall gives you time to respond, not react.
- Cash Flow Habits:
- Invoice quickly (or pre-capture payments)
- Follow up early and consistently
- Set up recurring revenue
- Negotiate better payment terms with vendors
Manage your cash—and you’ll have a financially fit business.
Quick Wins to Boost Cash Flow
- Shorten payment terms (Net 15 > Net 30)
- Collect partial payments upfront to cover the cost of delivery
- Incentivize early payers
- Avoid tying up money in excess inventory
- Review recurring expenses quarterly
Remember: Cash isn’t just a metric—it’s freedom. When you have cash, you can make decisions from a place of strategy, not survival.
Next month, we’ll shift gears to Building a Scalable, Profitable Business Model. Because once your cash is steady, it’s time to focus on sustainable growth without losing your margins (or your mind).
Client Story of the Month
A few years ago, Red Bike Advisors was engaged to assist a business owner preparing for the sale of their company. As part of our Seller Due Diligence services, we helped define and negotiate key financial terms in the sale agreement—particularly the earnout provision.
Earnouts can be complex, and poorly drafted terms often allow buyers’ post-closing decisions to reduce the seller’s payout. Our team worked closely with the client and their attorney to narrowly define how performance would be measured and prevent operational spending by the buyer from unfairly impacting the earnout calculation.
Fast forward to today: the original buyer sold the business again, and the new owner disputed our client’s entitlement under the earnout. Red Bike Advisors was re-engaged to assist the client and legal counsel in analyzing the financials, supporting the earnout calculation, and enforcing payment.
The result? Our client successfully recovered more than $300,000 in additional proceeds—demonstrating the long-term value of careful due diligence and precise financial drafting.
Who do you know that needs our services?
We're accepting new clients for...
1. Proactive accounting, tax & advisory
2. Tax resolution
3. Forensic accounting and fraud investigations
Who do you know that needs our services? Let us know--we're happy to help!
A Question for You
10-Minute Cash Health Check
Ask yourself:
- Do I know how much cash I’ll have 30 days from now?
- Do I have at least 2 months of expenses in reserve?
- Do I review cash flow monthly?
- Do I invoice and follow up consistently?
If not—no shame. But this is your cue to start today.
Until next month,
Your Red Bike Advisors Team
About Red Bike Advisors
We're on a mission to equip small business owners with finance and tax insights that create exponential value for their companies, customers, employees, and families. From compliance to advisory, we take the confusion and scramble out of business finance and tax strategy and bring in clarity, growth, and peace of mind.
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