If there is one thing that keeps business owners up late at night, it’s Cash Flow. Cash Flow is not profit, rather, Cash Flow refers to the money that is moving in and out of your business. Preparing an annual Cash Flow is a starting point, however, this must be monitored, reviewed and updated quarterly if not monthly. It is crucial for a business to understand where cash is coming from (inflows) and where it is going (outflows), including when. Seasonality and production lead-time may required a business to deal with significant outflows of money before realising inflows form the sale of products, for example buying summer clothing during winter which won’t sell until summer arrives.

Many businesses must manage outflows of money which require finance to cover costs of running the business and as such the Cash Flow becomes a critical document supporting the business’s Business Plan to help secure finance or working capital to maintain the operations of the business with the prospect of growing the business.

Business Focal Point can assist you prepare your businesses Cash Flow.