The start of a new year is always a good time to create a cash flow projection and work toward improving cash flow management skills. Adam Stewart, a debt collection expert, describes it this way: “Cash flow is having the right amount of cash in the right places at the right time, every time.” Cash flow management begins with observing the natural flow of funds in your organization, household, or business with the desired goal of generating useful cash flow projections. Here’s how you can get on top of your cash flow in 2023.
You don't have to listen to the news to know that each paycheck seems to disappear faster than ever these days. Inflation affects every aspect of life, such as grocery shopping, commuting, air travel - nothing is left untouched. One of the most effective tools available to counter the effects of the rise in prices and decline in the value of money is a household budget. Here’s some ways you can fight inflation by getting back to budgeting basics.
What does the future hold for your small business finances? Positive cash flow is crucial for maintaining business operations and paying employees. If you don’t manage your finances appropriately, you risk cash shortages to pay your expenses when sales slow down. Fortunately, there’s a way to help you see ahead to prevent these issues and help your business grow. Here’s how you can predict a cash shortage and prevent it from affecting your business.
One question I pose to small business owners: "Do you have a six-month cash flow projection?" If not, you may have a difficult time determining how successful your business will be during this COVID-19 pandemic. A projection helps you maintain the relationships you have with loyal customers. It prevents the many problems resulting from a lack of cash.
When I work with nonprofit leaders, I hear about the challenges they face with cash flow. Nonprofits have historically faced a unique funding situation due to the variability of grant funding cycles and donor contributions. I recommend a tool – cash flow projection – that can help organizations maintain financial viability today and in the future.