B104.14 - Cash Flow Management Process |
As part of your admin day you need to build in a simple system for reviewing your cash flow.
The Business-102 Finance section hit on cash flow management some.
Procedural Highlights
Ways to reduce Cash Flow Management Stress
The Business-102 Finance section hit on cash flow management some.
- It talks about the "Cash is King" / "Cashflow is King" thingy.
- Cash flow is the number one killer of businesses. Not lack of sales.
Procedural Highlights
- Cash flow management does not happen (should not happen) in your bookkeeping software that is for after the fact.
- Condensing and consolidating bank accounts to as few of vendors as possible for quick viewing of account balances is step one to a good cash flow management process.
- If more clarity is needed, you need to setup a google sheet to manually list and track receivables and payables in a manner that provides you the insight you need.
Ways to reduce Cash Flow Management Stress
- Cash reserves (3 to 6 months) reduce/eliminate the stress of Cash Flow Management.
- Operate within your cash flow reserve limits
- Setup lines of credit (secured and unsecured) for backup resources
- See Finance Section of B102 for more