“Have you ever been too busy driving that you’ve run out of gas?” ~Stephen Covey
I look at cash as the fuel for any business to operate; without it, it’s unlikely you’re going to get anywhere!
If you are properly managing and projecting your cash flow you should always be in the black and ensuring steady operations of your business.
Here are 3 tools you can use to greatly improve your ability to do this:
1) Quickbooks – This is a great piece of accounting software. With Quickbooks, you can upload a budget and chart of accounts and then track your transactions on a weekly/monthly/yearly basis. If you don’t have a tracking method already, this is step one. START TRACKING right away!
2) Excel – Once you’ve started tracking your budgets and transactions you can rest a little easier because you know where your money is. But to rest even easier it is important that you start to project your future cash flow, and that’s where excel can help. Start by figuring out your monthly revenue for each month in the year and then plan your monthly expenditures in each account from your chart of accounts that you have created in Quickbooks. As you do this it is important to ensure your revenue is higher than your spending, unless you are running the type of business that only cashes positive at certain times and that is part of your master plan!
3) Hire a bookkeeper – You’ve found every reason you can to avoid hiring another person or paying someone to do this, but frankly there just isn’t enough time for you to do everything and having this taken care of is imperative! This can be a part-time job or it can even be outsourced with today’s technology, but if growth is your plan then avoiding this is not an option!
There you have it, 3 things you can jump on right away to keep a better eye on your cash and ensure your business is on track for successful future growth.