The Importance of Managing Business Cash Flow

The Importance of Managing Business Cash Flow

Managing business cash flow must be done well every week or even every day. Below are 3 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. One of them is Pay Journal.

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.

Manage Your Business Cash Flow as Best 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.

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.

Journal accounting software, the right solution for managing your business cash flow
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. Additionally, when making business cash flow projections, you can manage business cash flow with great efficiency. This is important for developing short-term and long-term cash flow projections for your business. In addition, by using accounting software to manage business books, it is almost certain that access to cash flow and management will be very good.

Journals have very easy, detailed and effective business cash flow management. Existing features will save time because your business data is stored in the software. With Journal accounting software, you are able to make projections, monitor and control cash flow more practically.

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