26 Feb Cashflow? Do you manage it? What is Cashflow Forecasting? Tony Fremarek discusses.
Cash flow. Why is it important to my business?
Tony Fremarek discusses the importance of Cash flow management and modeling in your business. Cash flow management is the most important aspect of every business. A healthy cash flow ensures that the business can pay salaries on time and have funds for growth and expansion of the business. So many business owners fly by the seat of their pants when it comes to cash management. This is especially true with companies in growth mode, new businesses, seasonal businesses, or can be a leading indicator of a business that is struggling. At A Fractional CFO we recommend most businesses to create a 13-week cash flow model. This model becomes a “living” document, one that is updated weekly. It allows actual results to be compared to the forecast, and tweak the model to keep it in line with the business. You then add the 13th week to the new model. This essentially gives the owner 1 quarter of vision into the cashflow of the business. It is certainly easier to make adjustments to meet a payroll in week 7 when you know cash will be short then, versus trying to figure it out 2 days before payroll.
Can A Fractional CFO can help?
Managing cash flow is just another example of how A Fractional CFO can help your business become more successful and more profitable. Contact us today for a free 1 hour consultation.