AD Partners Cashflow Challenge Video #6: How Will I Make This Easier For You?

So, what will it help you accomplish? It is essential to take the time to sit down and map out a plan to get control of your money. This means knowing where, when, how, and why money is coming in and going out.

Knowing this movement of your money will show you where you may have some cash shortfalls so then you can put things in place to ensure that it does not become a major problem for your business. It helps you be proactive and plan for these potentially type cashflow situations. It also puts in perspective how your money is being spent and at what level of income you need to ensure you meet all of your commitments.

So here’s what you need to do next — you need to prepare a cash flow forecast. A cash flow forecast is a detailed report that
shows you the predictive movement of your cash position. To create this, you not only need to understand your level of sales and your level of expenditure, but also the timing of it. The timing determines your cash position at any given point in time.

Tony Dimitriadis