Cash flow is the movement of money in and out of your business. It’s always flowing so it’s never a static number. Outgoing expenses, incoming payments, bill timing, and business fluctuations all impact your bottom line.
Cash flow is more than having money in the bank, and good management is key to making sure your business’s future is bright. When you have clear insight into your future cash position you can effectively plan for, and manage, any financial situation.
82% of companies that go out of business do so because of poor cash flow visibility and management. That’s a bit doomsday, but knowing your cash position is vital to understanding your business’s numbers, staying on top of the flow of your cash and making proactive decisions that help your business grow.
A cash flow forecast gives you insight into your business’s future cash. Knowing that you have the right money at the right time helps you be proactive in your business. Incorporating a forecast into your financial management systems also gives you the ability to predict problems before they happen and helps you grow at a sustainable rate.
That old adage is true: success starts with planning. Sales increases, lost revenue, unexpected costs, new hires, or seasonal fluctuations are easily planned for when you create cash flow forecasts. Your forecast is there to help you see what’s what so you know exactly when you have the cash to reinvest in your business, or if you have a gap that your spreadsheet would have missed. It’s the guardian angel you’ve always wanted for your business (and it lives in your computer).
Amos works with popular accounting systems such as Xero, QuickBooks Online, Sage Intacct, and others. Follow the simple steps to connect your data and complete your user profile. Now you have a financial coach in your pocket.