From crunching numbers to clearing the fog

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By Janet Berry-Johnson | writer

David Safeer, founder and CEO of Cash is Clear Learning Systems, is on a mission to redefine how accountants think about their value. If your clients are consistently profitable on paper but always stressed about making payroll, you'll want to hear what Safeer has to say.

In this interview with The Net Gains, Safeer breaks down why cash flow, not just profit, is the secret to sustainable growth. He also weighs in on how to spot the blind spots that quietly kill momentum and the five essential steps to delivering cash flow advisory services that actually move the needle. -Janet Berry-Johnson 

Many business owners focus solely on profits, but you emphasize cash flow. How can accountants help clients prioritize cash flow as a driver of sustainable growth?

Accountants can help their clients by starting with their own mindset. I see it daily: accountants fixate on profit and/or taxes while neglecting cash flow. They pass this fixation onto their clients.

Accountants first shift their mindset, and then introduce tools like 13-week cash flow models and cash flow management strategies. Combined, they eliminate negative future bank balances, which is the foundation of helping a business thrive. Once you master the fundamentals, you pick key strategies to maximize cash flow.

What are some common cash flow blind spots that accountants and advisors can help business owners identify and correct to improve profitability and scalability?

Accountants in my mastermind course learn to identify critical cash flow blind spots. Inventory overstocking, extended collection periods and excessive overhead creep are easy to learn.

They open their eyes and minds when we dig past symptoms to find root-cause problems. Inventory? Why overstock, and how do you prevent it? A/R? Prevent late payments before they happen. Learning why expenses are high allows you to cut the right ones. Transitioning from reactive tactics to proactive strategies positions accountants as strategic transformation agents.

For accountants looking to incorporate cash flow advisory into their service offerings, what skills or tools do they need to deliver meaningful insights to clients?

Cash flow advisory engagements have five key steps. Each step requires skills typically beyond an accountant’s formal education.

1. Mentor. Teach business owners new skills and frameworks.
2. Mindset. Cash flow is not accounting. No theory. No principles. It is basic math combined with real-life timing.  Accountants need to see this first and then teach their clients.
3. Model. Understand how cash flows in and out so you can predict the future, including the impact of changes.
4. Manage. Change the timing of cash in and out of the company so clients have money when they need it.
5. Maximize. Implement strategic changes that improve the business to increase cash flow and profit.  

This interview was edited for brevity and clarity.

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