When the available resources are not being enough to cover the expenses of the operational activities of your business, you need to evaluate how the money is entering your box and where it is going. When if running a business, cash shortfalls can become a cause for concern, so we always recommend a third-party professional accountant to help improve your cash flow. But either way, there are actions you can take to organize it.
One of the pillars for the success of a business is financial management and many companies have a large flow of financial operations on a daily basis, involving payments, receipts, purchases and sales, among other transactions. In its day-to-day life, a company needs organization, not only in operations, but also in cash flow, which basically becomes an analysis of the balance available, for a correct and adequate balance of how much capital the company has, where they went resources are allocated and for what purpose. So that, regardless of the size of the business, the entrepreneur has a complete picture of the company's financial health.
It financial management is essential to support assertive decision-making, which is why we leave here some tips on how to organize cash flow, in order to help predict some financial situations and plan ahead, whether to solve problems, reduce expenses, unravel stocks, carry out investments or even applying for loans.
· Log entries and exits: it doesn't matter if the record is in sophisticated software or a simple cash flow spreadsheet. The important thing is to record everything possible, including Small expenses that are often overlooked. Fixed accounts and installments should also be considered, this will help with the cash flow projection for the coming months;
· Define a period for your cash flow: it is important to consider that isolated data may not represent much, so you should opt for weekly or even monthly cash flow. For cases of companies that have a large daily movement, the analysis works better on a daily basis, avoiding the risk of losing financial control;
· Define categories of inputs and outputs: when the inputs are categorized, the correct identification of the company's receipts allows for greater investments in what is owed. As for the outputs, the categorization helps to identify expenses and their directions;
· Define reserve capital: reserve capital is essential to sustain the business during periods of crisis, it is risky to depend on monthly sales, for example, or on loans and personal finances;
In addition to these main tips, encouraging cash payments to ensure a simpler cash flow, keeping a forecast of future payments and receipts and always keeping an updated backup of your spreadsheet to avoid data loss, are also measures that help with the organization.
With an organized cash flow you can optimize your processes, identifying your company's financial bottlenecks, in addition to directing resources to areas that need greater investment and cutting those that are spending more than necessary.
Get in touch with TATICCA – ALLINIAL GLOBAL, which operates with integrated auditing, internal auditing, accounting, taxes, corporate finance, financial advisory, risk advisory, technology, business consulting and training services, for more information, at www.taticca .com.br or e-mail taticca@taticca.com.br and learn more. Our company has certified methodologies for carrying out activities.