Focus on Cashflow = Business Success


Cash flow is used as a measure of a business’ financial health and refers to the movement of cash in and out of a business or project. A successful business has more cash flowing in than out and shows an overall profit – it is this that should be the focus of your business, and where your mind should be focused when thinking of business success.

In order to achieve this happy state, business planning is required. Forecasts are drawn up for twelve months or more in advance, indicating the expected cash flow at any given time. Cashflow planning of this nature allows the business to budget accordingly, organising bill payment to coincide with positive cash flow. Cashflow planning demonstrates times of year when business is likely to boom or when it is slow and sluggish.

Technology has eased the burden of business planning with the introduction of small business software. Such programmes allow businesses to set goals and remain focussed, keeping the business on track to success. For the small business technology saves labour costs and keeping abreast of day-to-day accounts becomes a straightforward task. Business start-ups can seamlessly create forecasts and share the information with all stakeholders.

Remaining focussed on your cashflow has always been high on the list for business success and these days the hard work has been simplified, allowing you to concentrate on the other areas of your business.

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