Do you have a tool I can use to measure my cash flow?
Our clients know about the importance of managing their cash flow, especially in this time. You want to conserve cash, accelerate inflows and decelerate outflows where possible. That is the essential “lifeblood” of your company. In order to manage cash, you will want to measure it. You asked for it, and here is a simple but effective method for doing so.
This is an uncomplicated Excel spreadsheet for measuring and managing cash flow on a daily basis. It’s easy to implement and the results are the “daily pulse” on cash.
Enter your beginning cash balance for each of the past four weeks. Customize your inflow and outflow categories and then track the daily entries. The balances will update automatically for the next time period. It also projects the next few weeks’ beginning and ending cash balances.
You now can see immediately what the impact will be if a payment that was expected is not received or if a payable is due that exceeded expectations and can adjust accordingly.
Questions? Need help with implementation? Please give Harvester Alison Hoffman a call at 224-688-8838 or email at [email protected]
Kindly shared and many thanks to Darrell D. Dorrell, CPA of financialforensics.com via the NACVA.