Managing your business cashflow

cashflow planning

Do you know what’s happening with cash flow for your business right now? How about six months from now? Cash flow monitoring and forecasting are essential to keep your business heading in the right direction.

There are so many priorities in the working day, it can be hard to stay focused on what’s happening with your business cash flow.

We all know the basics: if your business runs out of cash it won’t be able to operate. And if you aren’t able to spot trends and possible bottlenecks ahead, it can compromise your long-term investment and development plans. It undermines your ability to earn returns on any cash surpluses and trim costs to avoid cash shortages.

Take the time for regular cash flow monitoring and make cash flow forecasts part of your business planning. Get the best possible clarity around cash flow.

How often you forecast cash flow depends on the soundness of your business, although you really cannot do it too much. If your business is struggling, you should be forecasting and revising your cash flow every day.

Focus on cash flow now to:

  • Identify potential shortfalls in cash balances in advance — your early warning system
  • Make sure your business can afford to pay suppliers and employees
  • Spot problems with customer payments
  • Have current information for stakeholders like banks
  • Keep an eye on key tax dates so you’re not squeezed for cash when the time comes

If you would like to have a chat about managing your business cash flow better, let us know.