They are a working document. Monitor and improve them every month. Once you have tracked your cash flow month by month for a couple of years, you will begin to see patterns, and be able to maximize your positive cash balances and avoid the crunches. If you are considering applying for a bank loan, know that one of the first things a banker will want to look at is your cash flow history and two to three years of projections. This is an indication of how well you manage your money and whether your business is able to generate the cash necessary to stay in business and make the loan payments.
Assistance There are several ways to get the scoop on cash flow planning.
The NxLeveL entrepreneurial training course offered by the Idaho SBDC includes cash flow planning. Unless you like living on the edge, learn to be an expert in managing your cash flow. Your business will thrive, and all the people around you will be grateful for your newfound expertise.