Cashflow Management: Benefits Explained and Examples

It’s highly unlikely any business will “go broke” by having too much profit or too many sales!

Why most businesses struggle and eventually   “go broke” is poor cash flow.

Cash flow is defined as what monies come in and go out and when-

There are a range of cash flow forecast products on the market and many have advantages however most have one major disadvantage: They work on traditional monthly periods.

In some cases monthly periods will suffice but not if you run a smaller business and are not sure if you have funds to pay wages or BAS next week!

A good cashflow model will allow for weekly forecasts, and have the ability to “what-if” various scenarios. E.g. a business owner is looking to commit to a long term agreement. With the Magnus model you can simply add the cashflow effects to the model to see their overall impact.

Many small businesses work off their bank balances without taking into account future outflows and inflows thereby causing constant stress that fund sare not available when needed.

We use robust technology to give you a custom designed spreadsheet that allows for multiple bank accounts that has been developed especially for small business. This gives you:

  • Peace of mind you can meet your commitments well in advance
  • Enter into agreements knowing the costs are integrated into your financials
  • Surety and predictability that you can meet your obligations

Contact us for your free template and explanation / instruction pack.