Let’s Talk Cash Flow: Making Your Money Work for You

Melissa
Jul 13
2 min read

Updated: Jul 14

Sunset at the Sonoma County County Coast — Our Beautiful Sonoma Coast

Hi friends,

If you're a business owner - or even just someone with a healthy checking account - this one’s for you. Lately, I’ve noticed a trend among many of our bookkeeping clients: too much cash sitting idle in business checking accounts. It’s easy to let it sit, especially when you're busy running the day-to-day. But in this inflationary environment, that cash could be doing more for you. Let’s talk about what you can do instead.

A Pattern I’ve Been Seeing

At Apple Blossom Tax Service, we provide bookkeeping for a wide range of small businesses, and one thing that jumps out to me regularly on balance sheets is excess cash in checking accounts. It’s common. But it’s also an opportunity. Whether you’re in business or just managing personal finances, cash that isn’t working for you is losing purchasing power every day.

I’ve Been Thinking About It Too

This isn’t just advice I give—I'm working on this myself. As a business owner, I monitor our cash flow closely: payroll, software, rent, and day-to-day needs. But I’ve realized that I, too, sometimes get complacent about putting surplus funds to better use. This year, I’m focused on improving that, and I’m encouraging clients to do the same.

Consider a High-Yield Savings Account

If you don’t want to lock funds into a CD, a high-yield savings account is a great short-term tool. I recently opened one at Redwood Credit Union right here in Sebastopol - they’re offering 4% interest for business accounts. There are a few requirements (like a business line of credit and a credit card), but it’s worth it. I’ve said goodbye to Wells Fargo, and I couldn’t be happier banking local.

How Much Cash Do You Really Need?

Take a moment to ask yourself:- What are my average monthly expenses?- What income am I expecting in the next 30–60 days?- Are my accounts receivable under control?- Am I making the most of my cash position?

If you’re unsure, or if this sounds like something you’ve been meaning to think about - this is your nudge. There’s no one-size-fits-all answer, but I can promise you that awareness is the first step.

Let’s Look at Your Cash Flow Together

If you want help understanding how your cash flow works and how to make your money work harder, let’s chat. We’ll talk about reserve levels, planning ahead, and using the tools available to you—not just working in your business, but on your business. Yes, it’s a cliché, but it really does matter. I’m trying to take my own advice this year too.

If you're already a business client, you have a year-end tax projection appointment scheduled - but you can always reach out sooner. Send us an email, give us a call, or book time to talk cash flow. It’s one of the most important areas of financial health, and it doesn’t have to be complicated.

Warmly,