Ever wonder why profitable businesses can still struggle? The answer often lies in cash flow. As accountants, we see this daily - businesses making good money on paper but struggling to pay bills because they haven't planned their cash flow.

What is Cash Flow?

Simply put, cash flow is the money moving in and out of your business. It's not just about how much you make, but when that money actually hits your bank account. Think of it like this: you might have $50,000 in invoices out, but if no one's paying them, you still can't pay your staff or suppliers.

Why You Need to Manage Cash Flow

Managing your cash flow is about creating financial freedom for both you and your business. When you have strong cash flow management:

• Your staff get paid on time, every time

• You have money to invest back into the business

• There's a healthy buffer in your business bank account

• You can pay yourself regularly

• Supplier relationships stay strong with timely payments

• You can take advantage of growth opportunities

• Business stress levels drop significantly

How to Manage Your Cash Flow

Here's what most accountants won't tell you: you don't need complex systems or endless spreadsheets. You need a simple, forward-looking plan that shows what money is coming in and going out.

A 13-week rolling cash flow plan is your best friend here. It's not complicated - you look at your bank balance, upcoming income, and expenses, then make your best guess about timing.

Want a simple way to track your cash flow? Email us at [email protected] with the word MONEY and we will share our free template and video guide with you.

Final Thoughts

Don't wait until you're struggling to think about cash flow. The best time to start managing your cash flow is now, when things are good. Because in business, it's not just about making money - it's about managing it well so you can enjoy the rewards of your hard work.

Disclaimer: This is general advice. You will need to take specialist advice that takes account of your own personal circumstances.