Arkansas HVACR NewsMagazine September 2019

Business

budget can and will absorb every dollar that you make available to it. YOU HAVE A SIGNIFICANT SIZED BUDGET! If you let the money in your checking account, it will disappear. There is always just one more tool that

Five Reasons Your Business Needs a Hill & Valley Account

Bill Kinnard, Gandy Associates

Business can be hard enough on a day-to-day basis without wondering how you’re going to cover the bills, the next payroll, monthly withholding payments and every other

would make your job easier. Keep your eye on the ball. Don’t get distracted. This is a cash flow budget item. Transfer the dollars to a different account. There is not profit at the end of the month until after this payment has been made. On

person, vendor or team member who wants to take every nickel out of your bank account. A Hill & Valley account can make your like a lot easier during those slower times of year. Here’s how it works. Part of the monthly budget – yes you need a monthly budget – should be a payment into the hill & valley account. Treat this payment with the same urgency as the rent, your utility bill or a payment to your suppliers. Some have called this a rainy day fund. Dave Ramsey says his grandmother used to tell him he needed a rainy day fund. When he replied “well that’s not a very positive attitude”, his grandmother told him “I’m positive, it will rain some day!” The H&V account should be in a separate account. Don’t let the money sit in your checking account. The law of money says that every significant

The NewsMagazine welcomes Bill Kinnard, President & CEO for Grandy Associates. Grandy Associates and Bill focus on training HVACR owners and their key employees financial, customer, & business services. You can contact Bill at 877-202-8891 or www.grandyassociates.com

months where you are slow and there is no cash coming in, you can pull the money out of the H&V account to maintain your cash flow and stay current. When the profit returns, do everything you can to replenish your H&V account. Here are five benefits to establishing the H&V account. 1. There Will Be Slow Months – Just as Dave Ramsey’s grandmother said “I’m positive, it will rain some day!”, I am just as positive you will have slow months. You have those times of year when the cash in just doesn’t equal the cash out. During these months, you can draw funds out of your H&V account to make up the difference.