Moving Company Finances – How Much Money Should You Have on Hand?
Managing the day to day operations of a moving company is difficult enough without having to worry about all the financial questions that come along with owning/managing a business. One big question is, “How liquid do I need my assets to be and is it possible to be too liquid or too safe?”
It is important to have enough excess cash to pay your bills, but not to such a high extent where your profits aren’t helping you grow your business. It’s always important to reinvest in your company, but knowing the appropriate ratios of assets to liabilities and debt to equity will be key in helping you determine how much money should be on hand and how much should be reinvested in the growth of your company.
Read more about managing your moving company’s finances as it pertains to maintaining a balanced budget sheet and growing your business at the same time at 123Movers.com – Moving Company Finances
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