As a business owner, you must be able to manage your cash flow as well as possible. Perform a simple cash flow analysis to compare the total unpaid purchases with total sales due at the end of each month. If the number of unpaid purchases exceeds the number of sales, then you will have to spend more money than you received in the following month, which can indicate a cash flow problem. The more companies that include cash flow statements in the annual financial statements, the use of cash flow statement information as a tool for analyzing company performance will increase. Apart from that, if you wish to find an easy way to keep track of your company’s financial condition when you’re on a vacation, we suggest you hire Bookkeepers Sunshine Coast.
By making a cash flow statement and its estimates, it will give business people the opportunity to see a broader picture of their business. You can start with free tools to create a cash flow statement and see how far you will get. If you need a more complete analysis, then you can try paid accounting software.
Below are some easy ways you can manage cash flow.
a. Separate Personal & Business Accounts
Many novice business people mix their personal cash with capital, this way, business capital can actually be used for personal needs.
b. Pay Bills On Time
Never postpone even though 1 day to pay business bills, also pay attention to fines that may be obtained when making late payments.
c. Make Payments More Simple
This applies when you give credit to customers or suppliers. Make payments as simple as possible to make payment easy for them.
d. Give a voucher
Providing vouchers for each transaction, both cash receipts, and business expenses can be a control tool for each transaction more efficiently and effectively.
e. Petty Cash
The allocation of the formation of Petty Cash or petty cash funds can also be done to control cash expenditure of small value but always or routinely occurs every day.
In addition, you should consider using accounting software for your company. By utilizing the use of accounting software in the business, it can be ensured that financial data will be included in the necessary accounting records and financial statements.