Managing cash flow is critical for survival and success in business. Without cash, profits are almost meaningless.
We prefer weekly cashflow forecasts for managing bank accounts with tight financial constraints.
Planning ahead for large expenses or a reduction in sales can identify when there could be a crisis and you can take action.
Creating a cashflow
- Cashflow tracks the movement of any funds in and out over a set period
- Select a reporting period that suits, whether it is weekly, monthly or quarterly
- You should be realistic when preparing your cash flow forecast
- Be as detailed as you want when forecasting your income and expenditure ie sales, purchases and wages etc.
- Remember that it is easier to forecast in the short term as opposed to years ahead.
Creating a cashflow for your business keeps you accustomed to your current bank balance levels and what cash is available.
Cashflows keep you informed on the level of expenditure in your business.
Free cashflow template
There are many forms of cashflow software available but can be overcomplicated for running a small business.
Email email@example.com for a free copy of our excel cashflow template to get started tracking your cash movements.
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