Posts Tagged "cash flow management"

Understanding The Difference Between A Cash Flow Forecast And A Budget

Posted by on Mar 22, 2017 in Blog

Understanding The Difference Between A Cash Flow Forecast And A Budget

When you start out running a business, it is important that you understand some of the terms which you may come across. A cash flow forecast and a budget are two references which we will explain in more detail so you can have a better handle on the management of your finances. While there are some similarities between your cash flow forecast and budget, they are slightly different with specific uses and benefits. Both are used to further your business objectives and positively grow your business. Let’s break it down a little more. What is a Cash Flow Forecast? Your cash flow forecast allows you to plan out when you have cash and when you don’t. It explains when cash is going in, and cash is going out to help you budget accordingly. It lets you see when you will have money in the bank and take into account any loans or payments which need to occur over any given month. Your cash flow forecast can be easily updated each month to show what is in your bank account versus any project spends (fixed and variable) and income to be received. What is a Budget? Your budget is slightly...

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3 Tips To Manage Your Money During The Tight Months

Posted by on May 13, 2015 in Blog

3 Tips To Manage Your Money During The Tight Months

Whether you’re starting out, or have suddenly hit a rough patch after years of being open for business, learning how to manage your money is a difficult and often frustrating task. Unfortunately, some of us never truly master this skill, but if you wish to keep the doors of your business open, it’s important to develop your money management skills. Getting to the Heart of Money Management Two important factors that influence your ability to get a handle on your money are profit and cash flow. Controlling your direct and indirect costs can maximise your overall profit. Creating positive cash flows by timing your payments to occur when they are the most advantageous to you is also important. Doing so makes it easier to build cash reserve so that you can protect yourself against the very real possibility that you will run out of money at some point in the future. It will also ensure that you have adequate working capital to open and run your business. What is a Cash Reserve and Why Do You Need One A cash reserve is simply a portion of your earnings that you save rather than spend. Having a cash reserve, or...

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5 Tips For Managing Your Cash Flow

Posted by on Mar 18, 2015 in Blog

5 Tips For Managing Your Cash Flow

Businesses boom or go bust depending on financial management, and one important aspect you need to keep in check is your business cash flow. You always need to know what is being spent and earned where, and when, in order to properly manage, run and build your business. Often a business fails not because the product or service is poor, but because there is not enough money ready to boost its growth when necessary. Don’t let it happen to you! These simple tips will keep you on top of the very serious game. Know where you stand. If it is not possible to do daily, check your balances at least once a week to avoid surprises. Insist on positive cash flow. Watch your budget and do not overspend. If your business is operating over budget, look for ways to tighten expenses or increase income. Over time marginal improvements add up. Save for rainy days. In most industries there are peaks and valleys throughout the year. Know when yours are, and avoid overspending when times are good so you are able to tide yourself over when things slow down. Be easy to pay. Encourage direct deposits and provide account numbers...

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