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Positive Cash Flow Business Building Tips with Kirsha Campbell the Cashflow Maven










When business owners find their businesses in financial chaos and are ready to say hello to MORE cash flow, they reach out to Kirsha Campbell “The Cashflow Maven”. A CPA/CMA, Kirsha integrates all the moving parts in your business to set up the right foundation to be recession-proof, operate with reduced risk, increase cashflow, set up effective systems and procedures and so much more. Kirsha helps business owners to say goodbye to overwhelm, stress and frustration about their business's financial results and operation.

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www.thepassiveincomeexaminer.com

Connect with Kirsha www.thecashlab.ca Phone 888-521-4206 Email info@thecashlab.org

How financially strong or recession proof is your business? Download your FREE Business Assessment/Checkup Guide here https://bit.ly/3oOor3o

Tags : #Recessionproofbusiness #businesscashflow #cashflow #morecashflow #businessfinance









Lindsay:

Okay, good morning and welcome into another awesome episode of the passive income examiner. I'm so excited today to have another fabulous guest, miss KHA Campbell, who is a cashflow Maven KHA. Tell us a little bit about yourself and how you got started.


Kirsha:

Okay. Thank you so much for having me Lindsay, and the also work you're doing to, you know, connect with business owners and just support persons, you know, through various industries and organizations. So I do help business owners who are in a position where they are struggling with increasing cash, struggling with managing cash flow, struggling with setting up financial systems, that position their business to be cash positive and recession proof. So I partner with those business owners to, you know, set up their business in ways that they are saying goodbye to the frustration and overwhelm that comes at times with managing their business from, you know, different areas. So I started this business year I'm almost going into three years being on my own, but I've been in corporate in the corporate world, you know, managing multiple portfolios with going through different industries. So I do have that background to be able to, you know, know, okay, what is it that makes a business successful? What is it that does not make a business successful? So that's pretty much how I started. I actually started AF I had clients on the side in corporate and after I had my twin boys, I realized now is the time to step into this role full time. It's something I've always wanted to do, but especially with little ones, you need more flexibility and all that. So I decided that this was the time to jump in.


Lindsay:

absolutely. How old are your, are your twins?


Kirsha:

They're six years old. They were six in last August.

Lindsay:

Okay, awesome.

Kirsha:

Yeah. Keep me learning <laugh>


Lindsay:

Oh, I bet they do. I have four kids and they're not twins, but I, I can imagine having to the same time as keep you busy too.


Kirsha:

Exactly, you


Lindsay:

Know, well, good deal. So let's kind of dive in and see what I mean. Obviously we have to address the reason why your job is important. And, and I mean, just from my perspective and correct me if I'm wrong, seems like with COVID, especially more and more businesses are struggling to kind of keep up with the same models that they had before. But you know, even then a lot of times, and I I'll use myself an ex as an example, my sister and I, we inherited my dad's floor covering business. So in some cases, maybe people are taking over a business or, or business models are changing with the times and people aren't keeping up. What are some reasons that you found that companies end up using your services?


Kirsha:

One of the key one, one of the main reasons I do find is that they are, you know, they have no financial records. They, their finances are disorganized. They don't have financial systems in place, track their transactions to analyze what's happening. So basically it's like, they're just going out, running their business based on emotions. And the number one reason that businesses fail you is lack of paying attention to their financial numbers, lack of having that cash flow. So, especially with COVID, what we found was it, you know, a lot of business, they did not have that foundation. There was, there were no systems they wanted to apply for certain loans, government funding. They were not positioned to do that. They did not have the acquired numbers reports to submit. And that is, you know, that was a key thing coming out. They just were not prepared for that. And it's something, a lot of business owners, I, I find it happening, they think, okay, having a business, okay, just going along. I might have C healthy bank account when I log in, it looks okay. Things are fine. And at the end of the year, it just taken my box of receipts or some numbers to attack for payroll. However, if you wanna position your business to be recession proof, position, your business, to be profitable, cash positive, to really last, you need much more than that.


Lindsay:

Yeah. Do you have certain industries that you find you end up working more with than others, or is it smaller businesses versus larger? Does there any sort of, I guess, similarities?


Kirsha:

It varies, it depends on the strength that the business have in terms of the skillset and the support, larger corporations they're gonna have. Most of them have that expertise, you know, been in corporate myself. There are several departments, several structures, several experts that have to be board in a corporation. However, with the small, medium size business owners, most times they start out as solo and that's okay. However, as they grow and scale, they don't pull for the necessary key persons that they need on their team. So I do find myself working with a vari various, you know, industries. My heart is with those in the construction world, the contractors, the trades, but I do have clients outside of that. And again, it depends on what their setup is like. So I have worked with persons who they're in food and average, right. They don't, they don't have a strong team and they need that support to menu the, those storms. So it depends on the skillset that they have, the team that they have as well.


Lindsay:

That makes sense. Absolutely. Okay. I could definitely see the contractors that's we, we took over floor covering business and it's, it's like, you're a one man band in a way. So it is hard to keep up with those and hire a full-time accountant and all that fun stuff. So, you know, you gotta track your mileage and there's just so many little moving pieces and all you wanna do is focus on getting the jobs and getting the jobs done.


Kirsha:

And then getting, and, and that is, yeah, that is key. And you mentioned a good point that sometimes the, one of the deter, the deterrent is okay. The cost. However, there are a lot of options. You can have an outsource accountant and outsource CFO, OnDemand, CFO, and there are different packages that will work for your business. So, you know, it, it all, all depends on where you're at, but think of it that, okay. Is it cheaper to have the systems in place or to correct it, right? Mm-Hmm yeah, that's


Lindsay:

Exactly you're right about that. Well, okay. So if you had an example or let's say you have a client that I don't, how would they find you? First of all? I guess that would be the first question. <Affirmative> is, would they be searching for somebody to help them in that, in that capacity?


Kirsha:

Yes. So what I find most times persons are, they are at the level. Okay. They know they've started out in business. They know that, okay, this should be happening in a business. I need to have key reports. I need to review my numbers on a monthly basis. They is okay. I'm not keeping up. I thought I could manage. So they reach out for help. So I've had clients who, six, seven figures. They've never had a formal structure in terms of using an accounting software. They have never looked at reports, such as a profit and loss balance sheet to really analyze what happening in their business, to position them, to grow scale, to be recess. So they know from there that they need help. Right. And sometimes just by education, they might hear of, okay, this should be happening in my business. Oh, it's not happening in my business. So they reach out for help. So different ways, it, it comes in in that. And, you know, they might reach out in different ways, depending on where they're at their business and the struggles they're having. Sometimes they're having content bank over jobs and they, okay. I need help to figure this out. It could be, they're pulling in six, seven figures, however, there's no way to manage the money. So monies are coming in. It's not being managed through their sale out of pocket at the same time.


Lindsay:

Okay. And so what what do you, what's your first step, when you start looking at a business and, and taking 'em on as a client, kind of, how do you evaluate their situation?


Kirsha:

The first step is usually to assess what is happening. So if they do have AFIN, if they do have an accounting software system, I take a look at what's happening. So I look at, okay, what are the key reports saying? What are the numbers seeing? What's their sales? Like what, what's their expenses like getting into certain ratios? Is this reasonable? Is this not reasonable? I take a look at their balance sheet. How strong are they? You know? So I take a look at what's happening. If they have no systems, no reports, then we work to prepare those reports. So getting in for a information from them to produce reports, to okay, assess what's happening in their business. So it all goes back to the numbers. So it's not how popular you are on social media. It's not okay that I might have a healthy bank account. It might look very fat. It's, it's deeper than that. So it's looking for key signs to say, okay, what is the strength of this business what's really happening? And then that's the first step. And then we work now to say, okay, what are your goals for the business? You know? And then we assess what, what are, you know, what, what's the likely next step to really take your business to greater levels, to get your financial systems effective and working in your business? Mm-Hmm


Lindsay:

okay. So maybe we could use like a success story or somebody you kind of found and kind explain how you walked them through the process and how you were able to help turn their business around that way. Maybe kind of create a visual for our listeners to understand.


Kirsha:

Okay, great. So I had a client about, I think it's about our third year working together. So they had started their, it was their first business, the very experienced person. So they stepped out into the role to have their own business. Okay. They were struggling with getting all the financial, the financial records and numbers together. So they reached out. So we started working together. I set up the systems in place, effective financial systems. We had a flow going to track, analyze what was happening in the business on a monthly basis. And within the first year they were positioned to, they actually, you know, doubled the, in, in terms of their revenue kind piece, they were positioned to buy another business within the first year. Right. And subsequently that they were positioned to, you know, win major contracts. Right. So it all goes back to the numbers.


Kirsha:

So that was a very exciting story because it's just, it's just a solo person, right? Just one person. This is my business. I do have I'm, I'm, I'm ready. I'm serious. You know, I wanna ensure my business is set up for success. So they know they needed help. They actually started out trying to figure it on their own end. A lot of persons try that and that's fine. But afterwards they realized this is too much. I need the expertise on board to be able to track my records, to, you know, have key reports, position me to pay less taxes. That's another way that I see business owners, you know, paying so much in taxes when they don't have to, because they don't have a tax plan. So it's having all the moving parts in your business integrated to position to really increase cash flow, to be recession proof and so much more mm-hmm


Lindsay:

so your company is much like a CPA and then some <laugh>.


Lindsay:

Yes. Mm-hmm so you're taking, you're doing the accounting part of it, but you're also coming from the angle of a strong business, financial and understanding how to set up his, a company up more than just how to get the taxes done. Cuz sometimes I think, and, and this is from my own experience, a lot of CPAs are just like, well, how what's the most accurate way we are gonna do your taxes? And it really has nothing to do with how are we scaling your business? How are we helping you grow? How are we using strategy? It's just simply I wanna get it done and I want it to be done. Right. And I want it, you know, I'm very much about the accuracy and their, and their cuz. So I guess in a way it's a window, their, their mindset is in a window. It sounds like you really have, have a more global picture going on and you're able to help them go beyond just getting their taxes done, to maximizing what their, their company can get with those books. So to speak


Kirsha:

Yeah. And you made a good point because accounting has been a churn that's used so loosely now. So there are different focuses of a content. So you do have accountants that are gonna focus on getting edge transactions in the bookkeepers. So they are now focused on recording their transactions. Then you do have the accountant, who's gonna focus on preparing your taxes. So they're not taxing that you're just giving them your information. They're plugging in numbers. This is your tax return in the middle. You do have, now what's called the CFO and it varies. It can be one person doing all things so that other focus now is gonna be, how can you save on taxes, tax planning at DevNet strategy to save on taxes. That CFO also is gonna help you to, how can I save on costs? How can I reduce, how can I be more profitable?


Kirsha:

How can I increase in my cash flow? How can I reduce the risk? So the CFO is looking at the global picture of what's happening in your business and positioning your business to scale, to grow. You know, so it is important that as a business owner, you're connecting with the accountant, be clear about what they are doing for your business, because in the ideal world, you need those three categories, those three areas of focus on your business. And again, it can be the same person. I do recommend at least two persons for separation of functions and control purposes. One person might miss something. The other person might pick it up. So definitely be clear as a business owner, what your accountant is doing for you. Don't be misled, right? Mm-Hmm


Lindsay:

well, and also I think I, I mean, my day job is working for a log home manufacturer. So it's again, it's construction and they're, they're doing well. It's everything seems to be good, but the question might be I've noticed that my, my, my supervisor struggles with finding and tax preparer that is on call when he has a question like, Hey, you know, how do we file this? Like, is this, is this something we can write off or not Ted questions where it's it's I don't know if it's cuz we're in a small town and there's not that many people or what the case may be, but I think sometimes you're going along and you wonder, am I doing the right thing for my business? And then having that person that you can ask rather than just winging it is a really valuable asset.


Kirsha:

It, it is very valuable. And again, there are a lot of persons there who can do that. It's just about finding that resource person, but definitely that person is there because the relationship I develop with my clients, they're gonna make a purchase, oh, kosher, I'm gonna make this, what do you think? Should I do this this way? Should I wait until next year to pay this dividend to take an increase. So having that right person who will help you to, you know, strategize to save on taxes, then you build that relationship, but it's not gonna be like one of those tax repairs that you just, you know, take your numbers to and they prepare your forms. It's gonna, you're gonna have to find a tax expert or an accountant who is gonna be able to do that because when it comes to saving on taxes, it's looking at that global picture, your business, your personal situation, your goals, making the best mix of all that, just have that tax plan. That definitely makes you save on taxes. So yes, there are definitely persons who can do that. It's just about finding and connecting with them. And again, it depends on where you are, but there are some preparers, some, some tax planners, some tax experts, accountants who are operating throughout different states, different provinces. And again, you know, it, it just will depend on what you're looking for, but they are definitely out there and you you'll be able to find them for sure. I think. And it's worth finding them


Lindsay:

To save money. Yeah. I mean, just after just a few minutes of us talking, I'm I'm over here going, this makes so much sense why people need somebody like or so so, I mean, I'm really curious. Are you like, do you have, are you able to help people all across the United States or Canada or do you have a certain market that you're in or how does that


Kirsha:

Work? Yeah, so again, it depends on the needs. So when it comes to certain tax preparation, I do have partners I'm based in Canada. So I do have partners in this states who will work with the person, my clients in the states to help them to save on taxes when it comes to the overall CFO roles. And I'm, I do have clients throughout Canada and the states. That's fine. Yeah. Okay. But yeah, able to position you to connect you with the person definitely who will help you see on taxes and so much more.


Lindsay:

Okay. So let's talk about cash because I mean, obviously that's what the passive income examiner is about. <Laugh> is creating cash. And I was curious like how maybe you focus on, on that in businesses. Is it just through a tax strategy or do you have other ideas?


Kirsha:

So no, there are lots of other cash flow is so massive <laugh> so for example, when it comes to cash, one of the first things I look at when it comes to my clients, after we have a clean books, it's all starts with having a clean set of books, financial records. So after that's done, then the next step is how are we positioned to increase cash flow if they're struggling with cash flow issues. So it could be your sales, are you at the right price point pricing can make or break your business. So what is your sales like? Do you understand your sales cycle? You understand the needs of your clients, right? Because all those will impact your sales. Do you have, are you position to have a constant sales coming in? Even if you're a seasonal, even if you're a seasonal business, there are definitely ways in which you can position yourself to have, you know, constant stream of income coming in.


Kirsha:

Then again, we look at the expenses, how is that looking for your business? Are you paying too early? Are you not? You know, you paying too early, are you, are there ways to reduce your costs, reduce your expenses. So we get into all that as well. And then again, we look at certain items on the balance sheet, for example, accounts receivable. That's a key way in which a lot of persons have monies that are out there. There's no plan, no strategy for collecting monies that are O to, as a business owner. You find that, okay, two, three years persons are owing you. And you're like, okay, what's happening there? You think about the impact of a time value of money. A lot of persons don't think about that when it comes to their business. So it's looking at all the different moving parts of different areas when it comes to managing your, your cash flow.


Kirsha:

End thing. Another way is to, you might say, okay, I do, I don't sell on credit, but however, you have a third party provider, are those funds coming in? You might have used a credit card or third party merchant, are those monies actually coming into your business? Some persons are not email aware that, okay, this money didn't come in as yet. So it's getting into all those strategies you might say, okay, I'm getting six, seven figures. So I'm comfortable. However, you have a, still have a problem because there's no money management plan in place. So monies are coming in, but you don't have a plan where, okay, you need safe. You need to reduce your debt. We reduce your costs. So it's getting into that global view when it comes to cashflow, because it does impact so many businesses. And as we see with COVID a lot of businesses, they thought they were solid, but they didn't have the, the resources to survive for about 12, three months without getting cash coming in. Right. So again, do you have that buffer amount of cash where you can survive in the event of, of a downturn


Lindsay:

Mm-Hmm yeah. Well, what I'm curious about is how, okay, so, I mean, I've heard stories like, for example, hairdressers who couldn't see clients, you know, and some of them got really creative and made little baskets and started selling, you know, Hey, I mixed up your hair color, here's this. And, you know, are others who started a home based business where they started going to clients, homes, you know, people were able to pivot and stay functional. But I think like construction, for example, is one of those where it's not necessarily that easy to come up with a quick kind of I guess, backup plan, so to speak. And then of course, a lot of states, the cities were shut down, you couldn't get permits. So we saw that too. Mm-Hmm <affirmative> and so I'm just curious if you have any resources or do you ever brainstorm with them to come up with off topic suggestions or some way that they can still continue to earn money? That's kind of, I guess, outside of the box of what they were doing.


Kirsha:

Yeah, definitely. So one of the things was for example, selling parts, we had some clients where they were not able to offer certain services, but they had a stock of parts of supplies in their business. So that was one where they were able to get some cash coming in, selling what, what is it that they could sell even apart from parts, looking within their business and what is it that they could sell? Could you sell them it equipment, you know, strategies like those, what could you sell to really keep going? Another thing was, yes, you were not able to get into the, the client. And it depends on what was happening in certain states, but some persons, okay. They found creative ways to get in the home, to minimize contact with the, with the, their customers. So that, that was another way they still have the service going, but they minimize the contact that they have.


Kirsha:

Another thing that we found happening was some businesses were set up so risky. So they were focused on having a major supplier or major industry. And so, for example, if they were, are just focused on, you know, serving the food food, be the food service industry, the food service industry was shut down. They were out there. But what we do is okay, one of the strategies I use, I look at how risky my clients are set up. So if they have one major client, that's a big risk. So they had just a food service industry, they were risk of there. So encouraging them to say, okay, what if the food service industry goes down, you need to probably consider health, health will always be around. You're always gonna have the needs in the health sector. So opening up those other ways to say, how can you and serve other industry. So it's a lot about positioning your business because we never know what can happen at any time. Right. So it's just finding that right. Position and strategies to really, you know, prepare your business for these eventualities mm-hmm


Lindsay:

Oh man, what? Good stuff. Yeah. I'm sure there were quite a few grateful people to have you on their side past year. That's pretty great. Okay. So I guess, I mean, that was a lot, we just covered a lot and not a very long time, but I feel like we really got a good grasp and handle on what you're doing. You know, for people, is there, if you, could you give any business owners who may be listening, small business owners, are you able to like give maybe a couple of tips on things that they can do? Just, just on their own, just to start, I mean, obviously hire nothing. That was a big one.


Kirsha:

Yeah. One of the key things I do encourage you to do is get your financial numbers in order. It might not be you personally, but definitely have that done. It could be using QuickBooks, you know, other accounting softwares, but definitely that's, it's all such with a good set of numbers because when you have a good set of numbers, you're able to, okay, the position yourself to pay less taxes. Because one of the things business owner don't understand is if your expenses are categorized in the wrong way, if your purchases are not categorized properly, your position to pay more taxes. So you wanna ensure that you have a good set of books, reliable set of books, accurate you wanna, or that you have monthly reviews, at least in your business, a lot of business owners, you're going through you, you are going through the year. You don't know if you made a profit or a loss.


Kirsha:

You don't know what's happen in your business. Let's change that. So definitely start having monthly reviews in your business. What was my profit? What were my expenses? You know, should I change my price point? Should I change? You know, these services that I'm offering, I might be offering five services. Do I really need five? Is this one really profitable? So getting in touch with your, your business, I call it looking beyond the numbers, really getting that connection with what's happening in your business. If I have 10 persons on my team, do I need 10 persons? Do I need 10 contractors? What is the real cost of them? What's the labor cost. So getting definitely in touch with what's happening in your business. And number three, have a tax plan. A tax plan is simpler way a strategy to save on taxes. Illegal. A lot of persons are like, okay, it's too overwhelming.


Kirsha:

When it comes to tax, it's only the large corporations that can have savings. No tax savings is applicable to everybody. It all depends. If you have that expert on board to support, to guide you. So those are the three takeaways at leave with business owners, have a good set of financial records on, on check, have your financial systems that are effective. Number two, connect with what's happening in your business, at least on a monthly basis, know and understand your numbers. It will position you to change strategy quickly and you know, be in touch about chat. Number three, have a plan save on taxes.


Lindsay:

Okay. So before I wrap up, you just made me think of a couple other questions. <Laugh> just, just two. I promise isn't that? That's fine. I'm just naturally curious, you know, what can I say? That's fine. <Laugh> one of 'em was like, oh, I'm thinking over here about people who are just starting out in business, especially with COVID, especially with all these people who got laid off and now they're working from home and they're starting something new we're talking coaches or course creators or podcasters, right. People who are just so trained as start out. And obviously in a lot of cases, they're probably not gonna have an LLC or a corporation to begin with. At what point should they really start looking for maybe somebody like you or these things that you're talking about at what point in their business you know, is it when they make their first sale? Is it after they've been doing it for a year? Is there a certain time point where it makes sense?


Kirsha:

Definitely day one don't delay because a lot of persons will say, okay, I need to wait until I'm making money. No, you need to start from day one. You need to understand you haven't even incorporated yet. What's the best option for me in terms of my tax bracket, tax plans, your personal situation does impact your so you might not, the strategy might not be, you know, in effect or executed right away, but you wanna be aware. So you plan towards that, that strategy executing that strategy. So from day one, you need to have conversations with tax experts. What do you suggest in terms of setting up my business? What's the way that's gonna help me save on taxes. Your business structure just does impact the taxes that you pay. Number two, you definitely wanna connect with SD from day one, too, because you wanna know, am I doing the right thing?


Kirsha:

For example, I might be pricing my products, my services at this amount is that the right price point, right? Am I being really cost effective? So you wanna have these information, these questions answered. So I definitely suggest from day one, you also wanna start having a good set of books from day one, clean up work is not cheap. I will say that again, clean up work is not cheap. So you're like, I'll wait until next year. It's gonna, you're not, you are not saving any money because if we have to go back from your two years, two years, you're gonna be charged. You might get a discount, but you're gonna be charged for each month. You will get a discount somehow, but you, you are gonna be charged, right? So from day one, and again, your strategy is, is customized to where you are at. That's the beauty of when it comes to financial strategies and that is okay, but from day one, have those conversations, you know, from the beginning. So you are really positioned from day one to be a successful business.


Lindsay:

I love it. Thank you. Okay. So how can people find you?


Kirsha:

So I am on LinkedIn as Caria Campbell. I'm on Instagram as the cash lab, and I'm also on clubhouses as a cash lab now, too. And I'm on Facebook as KCHE Campbell. So it's at a KCHE Campbell, R V cash lab. You're gonna find me <laugh>


Lindsay:

Okay. I'll make sure to link you in the, in the comments of course, but definitely I would like to put it out there in the audio so people can, yes. You know, find you well, thank you so much for being a guest today. I mean, what a wealth of knowledge, and I'm just truly grateful that we are able to share this with people, even if they're just getting started, need to know. And thank you for being here.


Kirsha:

Yeah. And thank you so much for having me and, you know, I just wanna encourage business owners. It can be very overwhelming. It can be, you know, frustrating at times nerve wracking. But think about why you started your business. Think about generations that are dependent on your families. You know, clients that are dependent on the success of your business. So give it your all, and it doesn't have to be overwhelming if you have the right team, the right support on board.


Lindsay:

Perfect.



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