Whether you’re taking care of the bookkeeping in-house or your outsourcing it, you want to be checking in on your cashflow every week.

As the business owner, you want to be confident you know what your cash position is week on week – how much money you can expect to come in, and how much you need to pay out.

The check-in keeps you in control of your cash position week on week

Money surprises can be really stressful. Whether it’s an unhappy vendor chasing for payment, or you having to chase clients and customers for unpaid invoices, the impact on your cash flow (and your sanity) can be heavy.

You don’t want to be stunted by bills popping up that you didn’t expect. You want to feel confident you always know where you stand, and you want to be able to take opportunities in full knowledge of how your cash flow will be impacted.

So this is just one of the minimum standards that we want to make sure small business owners have, so they have peace of mind at night knowing their cash position and what their cash requirements are.

We’re not talking about super high level stuff, but it is vital knowledge

This is a minimum standard for all our clients. It doesn’t go into KPI measurement, or help you understand your financial statements, your gross profit or profitability. That’s all at a higher level.

What we’re talking about is a cashflow summary. We send our clients an excel spreadsheet every week that shows:

  • A snapshot of your current cash position – meaning you can see what money is in the bank at a given time.
  • Payments that need to go out in the coming week (Accounts Payable)
  • Any major cash flow coming in, in the week (Accounts Receivable)
  • Any other major hits up and coming – your next monthly payroll amount or next bi-weekly payroll amount, balances that are due on credit cards, any long term debt you’re paying off.

You’ll be able to go down the accounts payable list and see who’s going to need paying in the week, and whether particular vendors need prioritising in order to keep relationships intact.

You’ll also be able to go down the accounts receivable list and see what’s due to be paid in the week. You can check-in on any customers who are overdue a payment, or are chronically late paying their bills. This will help you decide who needs a call, or how you can take action to get paid on time. You may end up deciding to stop doing business with the customer altogether.

Your bookkeeping needs to be correct for this to be meaningful

Everything needs to be in place for you to get value from a weekly cash flow check-in. By this we mean you need to have a bookkeeping system in place and be accurately tracking transactions on a daily basis. Without up to date accurate numbers, the data will be skewed, and the exercise will be pointless (and arguably even more stressful, because you’ll be prone to encountering surprises).

Get the information you need to make decisions fast (and get a better night’s sleep)

If you have all the bookkeeping pieces in place, get help to understand what needs to be done with your cashflow.

How you manage your cash flow can be the difference between running a successful business, or running into serious problems. We suggest at least having a weekly check-in as a minimum, whether you’re a client of ours or not, so you have all the information you need to make decisions in the best interests of your business.

We don’t want you to lose sleep worrying about where money is coming from or how you’re going to make it through the next period. Save yourself the hassle, and talk to us about getting the weekly feed of information you need.