4 Easy Ways to Manage Your Cash Flow

Facebooktwittergoogle_plusredditpinterestlinkedinmailby featherWhen it comes to business growth, a lot depends on the money in the bank. And the faster the growth trajectory of a business, even the most profitable ones, the more crucial cash flow monitoring becomes for business sustainability. Cash flow monitoring is about more than how much cash is in the bank right now. It also keeps track of where you’ve committed your cash for the next 30, 60, and 90 days. Monitoring cash flow can seem intimidating, but a few tasks can help you break down the process:Reconcile bank and credit cards regularly.If it takes more than 30 minutes to reconcile your business checking accounts, consider seeking professional help to streamline that process.Record all bills and payments due.When entering future payments in your accounting system, be sure to enter the outstanding amount due along with the payment terms.Record all invoices and payments due.Keeping track of money owed to your business is just as important as knowing what payments you’re making. Remember to enter  when you will be expecting to receive payments.Measure your working capital.Take note of your working capital and working capital changes on a regular basis. Remember that current assets – current liabilities = working capital. If there’s cash in the bank, but your working capital is negative, a cash-flow shortfall may result. These reminders should help you begin to plan the cash flow needs and/or potential shortfalls your business may face. In our next post, we’ll discuss ways to prevent and manage cash-flow shortfalls. Our next post will provide tips for preventing a cash-flow shortfall in your business. Stay tuned!Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather