GYMGUYZ Local Schema Template
Owl Bookkeeping and CFO Services Logo White
Expert Bookkeeping At An Affordable Price

Driving Cash Flow Through Sales, General & Administrative Expenses

Sales, General, and Administrative Expenses (SG&A) is a long-winded way of saying “overhead.”

We have compiled some essential rules of thumb when it comes to using SG&A as a cash flow driver.

Rule #1: Cut carefully

The easiest cuts are usually the ones that have the smallest amount of immediate impact on the company’s success. Unfortunately, these are often the cuts that will do the most long-term damage. It is important to understand the difference between resources that are “fat” and resources that are “muscle.”

Rule #2: Consider capacity

Do you need a bit more muscle? If so, how much? At some point, “step-functions” come into play for nearly every business. For example, you may need to hire a whole person even though you need a half of one (we will resist the temptation for a joke about cutting people in half; that would be in extremely poor taste). Hiring more resources than you need — even muscle — gets expensive until you use up that extra capacity.

Rule #3: Only pay for what you need

Some expenses can be added “as needed” or outsourced. It is possible to outsource or hire “fractional” employees for virtually every aspect of your organization.

Owl Bookingkeeping Home

Rule #4: Add carefully

If you think you are ready to add resources, first take a critical look at why you are adding, and the ultimate P&L upside of your potential addition. If there is not a compelling impact to your bottom line, you may want to revisit your logic and save your money for more critical investments.

We are proven muscle builders and fat cutters. Give us a call to see how we can help you follow the rules and get with the (cash) flow.

Related Reading:

Don’t stop here. Be sure to check out some of our other accounting resources.

We have found that the cost savings and efficiencies of working with a company like Owl is more beneficial than hiring our own in-house employee.
With Owl’s in-depth knowledge of our business and an awesome attitude, our business continues to run smoothly.
Owl staff understands not only the financial side of business but is able to coach us on other aspects of business decisions and to help us define alternatives.
The attention to detail, coupled with an understanding of and willingness to dig in to our unique systems and processes has kept us running smoothly.
Previous slide
Next slide

Learn More About How OWL Can Help You

Owl Bookingkeeping Home Icon


Whether you need help with accounts payable, payroll or your monthly close, our accountants ensure these critical tasks are completed accurately and on time.

Owl Bookingkeeping Home Accounting Icon


When your books are up to date, you can respond to opportunities and challenges quickly. Accurate, bank-ready financials allow you to make better decisions for your company.

Owl Bookingkeeping Home Financial Planning Icon

Financial Planning

Gain access to powerful insight typically only available to companies that employ a full-time controller or CFO. Leverage their expertise when you need it, without adding to your payroll.

Freedom to Focus on Your Business

Our Partner Organizations →

Burns Engineering
Cooks Bellecour
Norway House
owl booking keeping deep see logo
Grey Ghost sound
owl booking keeping evo communication logo
Landlord Resource Network Logo
The Mad Hatter Tea House Logo
Pavement Resources Logo
Medical Alley Logo
Growing Edge Logo
La Boulangerie Marguerite Logo
Claire Givens Violins INC
Asian American Organization Project
Beyond Words Co
Access Philanthropy

Get the Full View Your Business Financials

Just like an owl can turn their head 270 degrees to see the whole landscape, Owl Bookkeeping and CFO Services can help you see your full financial picture.

Call us today: (612) 816-6007