4 PRACTICAL STEPS TO MANAGING YOUR CASH FLOW
An informative guide and workbook to assess your business cash-flow by Julie Wilkinson of Wilkinson Accounting Solutions
1. Develop a cash forecast for the next 12 weeks!
2. Review all of your costs.
3. Review all of your costs.
Think about the longer term vision of your business and how you think you can get there. This should be at least a 12-month forecast and realistic in terms of what you will need to spend on areas such as marketing, promotions and advertising etc to build up new clients. You should analyse your profitability by service, customer or product and think about what investments you may need to generate these customers along with identifying potential new revenue streams. Going back to the cash flow and cost analysis, remember it may not only be funding you need to pay your essential liabilities but if you need investment to keep up brand awareness etc, this may also require funding. It is not always best to stop all spend as it can hinder longer term growth.
4. Implement an effective bookkeeping process
An effective bookkeeping process needs to include:
Cash Flow Questions
Use my checklist to see how far you are with your cash flow planning, to strategise what needs to be done!
1) 12-week Cash Forecasting / Cost Review
2) Business Plan
If you answer no to any of the above, then you should build a business plan. If you have a history of trading, then you can use ‘what’ you have done previously as a basis on how you want to grow.
3) Bookkeeping Processes
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