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Managing your cash flow

A Cash flow forecast is critical for you to plan your path to recovery. It is vital you work out how long you can last and what you need to do to extend that time. If you need to talk to the bank or anyone else it is likely the first thing they will want to see is a cash flow forecast. If you are using Xero you can get a Statement of Cash flow as a report and there are tools and add ons that allow you to create a cash flow.

For those that aren’t too sure exactly why they are doing this, a cash flow is a schedule of all cash coming into and out of the business. Essentially allowing you to see at what point you will need more cash to stay afloat. Some of you may already have out standing balances to suppliers and creditors and a bunch of other regular commitments which need to be entered, you would also account for the govt pay subsidy. For those businesses that are closed it will be urgent to do this now if you haven’t already done it.

This will allow you to get help and to be able to quickly share your current situation.

There are other cash flow templates online, but the best thing you can do is keep it simple, minimise or eliminate any cost you can and if you need to talk to someone get help now. Regarding understanding cash flow your accountant is likely the best place to start. Don’t hesitate to email me if you need help, but really where I can best help is after you have done this part and need help with restructuring, operational change and marketing. Stay well and calm, your physical and mental health is your greatest asset. Regards Mark

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Mark Collins