๐๐ญ๐ซ๐จ๐ง๐ ๐๐๐ง๐ญ๐๐ฅ๐ฌ. ๐๐ฆ๐ฉ๐ญ๐ฒ ๐๐๐ฌ๐ก. ๐ ๐๐ซ๐จ๐ฉ๐๐ซ๐ญ๐ฒ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐๐ค๐-๐๐ฉ ๐๐๐ฅ๐ฅ ๐ข๐ง ๐๐
A large property management company in Los Angeles, California came to us at ๐๐ญ NishQuo Consulting with a confusing problem:
๐ Properties were occupied
๐ Rentals were being collected
๐ผ Operations were busy
Yet – cash was always tight.
That disconnect is usually the first red flag.
๐๐ก๐๐ญ ๐ฐ๐ ๐ข๐ง๐ข๐ญ๐ข๐๐ฅ๐ฅ๐ฒ ๐๐จ๐ฎ๐ง๐
Once we reviewed their books and processes, the root issues became clear:
– Incorrect and unreliable accounting
– Persistent working capital stress
– Loan outflows exceeding inflows
– No structured tracking of receivables or payables
– No owner (landlord) statements,leading to frustrated and dissatisfied owners
In short, management had no financial visibility to make confident decisions.
๐๐ก๐ ๐ซ๐๐๐ฅ ๐๐ข๐ฑ ๐ฌ๐ญ๐๐ซ๐ญ๐๐ ๐ฐ๐ข๐ญ๐ก ๐จ๐ง๐ ๐ญ๐ก๐ข๐ง๐
We didnโt jump into cash flow strategies or cost-cutting immediately.
We started where every real solution starts:
๐ ๐
๐ข๐ฑ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐จ๐จ๐ค๐ฌ.
We cleaned up and finalized FY 2024, rebuilt the accounting structure, and then analyzed what the numbers were actually saying.
๐๐ก๐๐ญ ๐ญ๐ก๐ ๐๐ฅ๐๐๐ง ๐๐จ๐จ๐ค๐ฌ ๐ซ๐๐ฏ๐๐๐ฅ๐๐
Once the data was reliable, several hidden leaks surfaced:
๐จ ๐๐ข๐ฌ๐ฌ๐๐ ๐๐จ๐ฆ๐ฆ๐ข๐ฌ๐ฌ๐ข๐จ๐ง ๐ข๐ง๐๐จ๐ฆ๐ – management fees were not being charged as per agreed percentages on rental income
๐ธ ๐๐ฐ๐ง๐๐ซ-๐ซ๐๐๐จ๐ฏ๐๐ซ๐๐๐ฅ๐ ๐๐ฑ๐ฉ๐๐ง๐ฌ๐๐ฌ (appliances, gardeners, security, urgent repairs) were being paid by the management company instead of being reimbursed by owners
๐ No standardized ๐ฆ๐จ๐ง๐ญ๐ก๐ฅ๐ฒ ๐จ๐ฐ๐ง๐๐ซ ๐ฌ๐ญ๐๐ญ๐๐ฆ๐๐ง๐ญ๐ฌ, creating trust gaps and disputes
โ๏ธ Certain contractors and ๐๐จ๐ง๐ฌ๐ฎ๐ฅ๐ญ๐๐ง๐ญ๐ฌ ๐ฐ๐๐ซ๐ ๐๐๐ข๐ง๐ ๐จ๐ฏ๐๐ซ๐ฉ๐๐ข๐ relative to value delivered
๐งพ ๐๐ฎ๐ฅ๐ญ๐ข๐ฉ๐ฅ๐ ๐ฅ๐จ๐๐ง๐ฌ ๐จ๐ง ๐ญ๐ก๐ ๐๐จ๐จ๐ค๐ฌ – some of which could be closed once new cash inflow opportunities were unlocked
๐๐ก๐ ๐จ๐ฎ๐ญ๐๐จ๐ฆ๐
By fixing the foundation and tightening processes, the client gained:
โ
Improved cash flow visibility
โ
Better working capital control
โ
Restored transparency with property owners
โ
Reduced unnecessary costs
โ
Clear decisions around debt and loan closures
Most importantly, ๐ฆ๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐ข๐ง๐๐ฅ๐ฅ๐ฒ ๐ก๐๐ ๐ง๐ฎ๐ฆ๐๐๐ซ๐ฌ ๐ญ๐ก๐๐ฒ ๐๐จ๐ฎ๐ฅ๐ ๐ญ๐ซ๐ฎ๐ฌ๐ญ.
๐๐ก๐ ๐ญ๐๐ค๐๐๐ฐ๐๐ฒ
Cash flow problems are often not a revenue problem.
Theyโre an ๐๐๐๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ , ๐ฉ๐ซ๐จ๐๐๐ฌ๐ฌ, ๐๐ง๐ ๐ฏ๐ข๐ฌ๐ข๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐ฉ๐ซ๐จ๐๐ฅ๐๐ฆ.
If youโre running a property management business and constantly feel short on cash despite strong operations, the issue may already be sitting in your books – unnoticed.
๐๐ฅ๐๐๐ง ๐๐๐๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ๐๐จ๐๐ฌ๐งโ๐ญ ๐ฃ๐ฎ๐ฌ๐ญ ๐ซ๐๐ฉ๐จ๐ซ๐ญ ๐ก๐ข๐ฌ๐ญ๐จ๐ซ๐ฒ, ๐ข๐ญ ๐ฎ๐ง๐ฅ๐จ๐๐ค๐ฌ ๐จ๐ฉ๐ฉ๐จ๐ซ๐ญ๐ฎ๐ง๐ข๐ญ๐ข๐๐ฌ.
๐ Follow NishQuo Consulting for real-world finance, accounting, and cash-flow transformation stories.