Skip to Secondary Navigation Skip to Main Content

Current Beehive

NigeriaChange

Languages

Keep Good records

Keeping good records is the first step in managing your cash flow. By getting a handle on what you're spending and earning every month, you can avoid cash flow interruptions and plan properly. You can use cash flow budget worksheets to show your income and expenses side-by-side on a monthly basis. You'll see where you have extra money in your budget to meet your goals and you can highlight areas where you overspend.

Use QuickBooks or some other bookkeeping software to keep track. You should also hire a bookkeeper who's familiar with the program to set it up and teach you how to use it. The program will help you organise your cash flow, categorise your expenses, and run cash flow and payroll reports. When you know where cash gets stuck and when its flows more freely, you can manage your income and expenses better.

Bookkeeping software can also help you create cash flow analysis reports. A cash flow analysis shows how much you expect to earn. You can map out how much cash your business has at any time to cover the day-to-day needs of inventory, sales, salaries, expenses, and more. It also tells you when you're going to break even and start to make a profit. Lenders look at cash flow statements to see how much cash will be available to cover your loan payments.
 

0
No votes yet
Your rating: None

Having a balanced record will ensure you that you are venturing on the right track of your business. - Mark Zokle

»