There are numerous of tasks that are crucial to be included in any small business cash flow management system. Several tasks are daily, many are weekly and others are on a regular monthly basis. Defining who is in charge of the tasks and routinely checking that they are done is good management. Be proactive in being aware of what cash you will need in the future. Kasasa
To handle the cashflow of a business, within the day to day procedure, it is essential to include the following duties:
1. Prepare and review your Cash Flow Strategy weekly. How much cash are you beginning with, what cash is scheduled in and what cash arrives out.
2. Balance out your money taken daily including payments received from credit cards. Monitor your internal controls for controlling cash. Have different people reconcile your bank medical data and cash accounts to those who deposit the checks and cash.
3. Review your Profit and Loss at least regular. Preferably prepare your P&L in house or get your accountant to do it for you, but do not wait too much time. Accounting software packages such as Quickbooks and MYOB are well suited for a range of small enterprises and are easy to set up to create P&L reports.
4. Take a look at Balance Sheet monthly. Determine your quick ratio (liquid assets divided by current liabilities) -should be better than 1 along with your current ratio (assets divided by liabilities) – at least 2 to 1 great.
5. Ensure any surplus cash is earning you interest and is also easy to access.
6th. See your bank for a line of credit before you need it
A Small Business owner may wear many hats across his/her business, however Cash Flow Management is one area that the organization Owner is wise not to delegate or dismiss.