AD Partners Cashflow Challenge Video #5: What Will Cashflow Management Help You Accomplish?

So, what will it help you accomplish?

It’s essential that you take the time to sit down and map out a plan to get control of your money. That means knowing where, when, how and why it is coming in and going out. Knowing this movement of your money will show you where you may have some cash shortfalls so you can put things in place to ensure that it does not become a major issue for your business.

It helps you be proactive and plan for these potentially tight cash flow situations. It will also put in perspective how your money is spent and what level of income you need to ensure you are able to meet all your commitments. Here’s what you need to do next The cash flow forecast is a detailed report that shows the predicted movement of your cash position.

To create this, you need to understand not only what level of sales and expenditure you are likely to generate, but also the timing of it. This timing determines your cash position at any point in time.

Tony Dimitriadis