Every Monday, we look at the ABCs of cash flow management.
D is for Detrimental
It’s exponentially detrimental to clients’ finances to disregard their need for cash flow plans. There’s nothing more dangerous to your practice or your clients.
Let’s compare tax planning to cash flow planning:
- Would clients know if they were missing out on tax advantages without your help?
- Do you know if they’re missing out on tax advantages without actually examining the situation?
- If you could find tens, if not hundreds of thousands, of dollars for your clients in tax efficiencies, would it be standard practice not to tell them, as they seem to be doing fine?
No professional would ignore tax efficiencies. It would be unnecessary detrimental to the client’s situation and would hold them back from their true potential.
To help clients with tax planning, we have to look for the savings. We all understand the value of tax savings shouldn’t be held back from clients, no matter how much wealth they already have.
So why does cash flow planning — which in many cases is just as or more valuable — get treated as an afterthought, or worse, tossed aside?
Don’t be a detriment to clients; cash flow planning can drastically enhance the value of all of your other planning efforts.
Continue on to letter E by reading The ABCs of cash flow planning: E is for Evolution.