What Should Your Internal Accountant Be Doing for Your Cash Flow?

A Founder’s & Business Owners Guide to Getting Real Value Beyond Just “The Books”

You’ve grown your business, revenue is up, and you finally hired an internal accountant.

Great!

But now you’re wondering:

• “Are they just here to do data entry?”

• “Should they be managing cash flow actively?”

• “What should I hold them accountable for?”

Many founders assume their accountant naturally “handles cash flow.” But without clear expectations, important cash insights can slip through the cracks—leaving you blindsided by cash shortages.

In this article, we’ll break down exactly what a CEO or business owner should expect from an internal accountant when it comes to managing cash flow.

Why Cash Flow is More Than “Doing the Books”

Plenty of business owners think:

“I’ve got an accountant—they’re on top of cash flow.”

But there’s a big difference between:

✅ Recording history (bookkeeping, tax compliance)
❌ Proactively managing future cash flow (forecasting, risk planning)

Without proactive cash management, businesses can appear profitable on paper yet run out of cash—a founder’s worst nightmare.

Key Cash Flow Responsibilities for Internal Accountants

Here’s what you should expect from an accountant who’s truly managing your cash flow—not just punching numbers into accounting software.

1. Maintaining Accurate Cash Records

At a basic level, your accountant should:

• Reconcile bank accounts regularly (weekly or daily in fast-moving businesses)

• Accurately classify all cash inflows and outflows

• Ensure financial data is current

This forms the foundation for any reliable cash flow analysis.

2. Preparing Regular Cash Flow Forecasts

Your accountant should:

• Prepare a rolling 13-week cash flow forecast

• Update it weekly or biweekly

• Highlight upcoming cash gaps or surpluses

Forecasting helps you make decisions before a cash crisis hits.

3. Identifying Cash Risks and Shortfalls

Your accountant should:

• Spot trends like customers paying slower

• Flag rising costs that could strain cash

• Alert you to tax or debt payments coming due

They should act like an early-warning system—not just report what already happened.

4. Managing Working Capital

Good cash management means optimizing:

• Accounts Receivable → chasing late payers

• Accounts Payable → negotiating better terms

• Inventory levels → avoiding excess stock tying up cash

Your accountant should actively track and manage these levers.

5. Providing Insightful Reports

Your accountant should deliver cash reports that are:

✅ Clear and visual (charts > spreadsheets)
✅ Action-oriented (“Here’s what we should do…”)
✅ Regular (weekly or monthly)

You shouldn’t have to decode cryptic accounting jargon to know your cash position.

6. Helping You Plan for Growth

As you grow, your accountant should help model:

• Cash needed for new hires or locations

• Equipment purchases

• Marketing campaigns

• Seasonal swings

They should turn your business vision into numbers—so you know if you can afford your plans.

Signs Your Accountant Isn’t Managing Cash Flow Properly

Watch out for these red flags:

❌ You only hear about cash issues after they happen
❌ You don’t receive regular cash flow forecasts
❌ Forecasts are just copies of your P&L, not real cash predictions
❌ There’s no discussion of risks or “what-if” scenarios
❌ You’re constantly surprised by cash shortfalls

If these sound familiar, it’s time to reset expectations

Key Takeaway

Hiring an internal accountant is a huge step forward—but don’t assume they’re automatically managing your cash flow proactively.

Expect and empower them to:

✅ Keep cash records accurate
✅ Produce forecasts
✅ Identify risks
✅ Help you plan for growth

Cash flow is the oxygen of your business. Make sure your accountant is helping you breathe easy.

Call to Action

Curious if your accountant is covering all the right bases for cash flow? Drop a comment or reach out—we’d love to help you benchmark your accounting team’s cash management practices.