Cash is king as they say, and realistically, no matter how many sales you’re making, if there’s no cash, there’s no business.
With lockdown kicking in for a second time this year, affecting many of our businesses this month, it’s vital to get a grasp of your cash.
It’s time to say hello to the cash flow forecast – a report that helps you manage your cash on a daily, weekly or monthly basis – whatever suits your company activity levels best. It’ll show you the reality of your spending, including all those ‘little’ purchases you hadn’t factored in. It forces you to think about where you can and should cut back, and makes you challenge your business processes for getting money in from clients. In uncertain times such as we are now, it can also help you to organise payment plans and holidays well ahead of due dates.
I know reports like this just aren’t your thing – you think it’s way too complicated, you wouldn’t know where to start and you don’t even have the time to manage it.
Let me assure you – it’s not complicated – it’s literally a sum that starts with your bank balance, adds your income and deducts your outgoings to give you an expected closing balance. The thing is, I bet you’re already doing it in your head or in a notebook anyway, which is harder as you’re having to rethink or rewrite this constantly!
Where do you start? With your bank balance!
As for time, what if I told you it’s something you could manage in about 20 minutes each week? Yep, that’s it!
If your business is going to survive and thrive, managing cash needs to become a habit of yours. To help make that happen, I’ve put together a cash flow forecast template, which you just have to plug your figures into each week. I guarantee you’ll quickly see how simple and effective it is.
I’ve even added in a bonus personal cash flow, so you can see how much impact your business finances and drawings will have on your personal finances. Cash flows aren’t just for business – they’re invaluable in everyday life.
Gone will be the days you go to bed panicking whether you’re going to be overdrawn, if you’re going to be able to pay your bills or if you’ll even be able to pay yourself. No more burying your head in the sand. You’ll instantly have more control over your finances, with the insight to save money and improve the way you do things.