Monitor your business cash flow

It’s essential to monitor and measure your business’s cash flow. This doesn’t have to be time-consuming if you use one of the many tools available, such as QuickBooks or Xero. You can also hire an accountant to help you.

To monitor your business’s cash flow on your own, follow these tips:

1. Look at your current available cash from the following sources:

  • Investments in your business
  • Loans
  • Your business bank account balance
  • Cash from sales
  • Cash from the sale of equipment/excess inventory
  • Any other cash generated

2. Calculate your monthly expenses:

  • Working capital
  • Rent/mortgage
  • Marketing costs
  • Salaries (including yours)
  • Inventory costs
  • Taxes owed
  • Cost of utilities
  • Loan repayments
  • Any other expenses
How to increase your business’s cash flow