Finquest Accounting and Bookkeeping would like to encourage small businesses to set a cash reserve goal for 2021. At a minimum, this pandemic has taught us to build a nice cash reserve to help weather unforeseen economic conditions. The best way to build a cash reserve is via a monthly allocation technique. Quite simply, you identify a total cash reserve goal for the year and divide that amount by 12. For example, an annual cash reserve goal of $100,000 means you’ll need to set aside $8,333 per month.
This type of nest egg planning will build liquidity for your business and help shield you from uncontrollable and catastrophic events. If you need assistance with cash reserve planning, please reach out to Finquest Accounting and Bookkeeping at 678.784.4018. We’d be happy to assist.