When the available resources are not being sufficient to cover the expenses of your business's operating activities, you need to evaluate the way in which the money is entering your cash and where it is being destined. When running a business, cash shortages can become a cause for concern, so we always recommend an outsourced 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 transactions on a daily basis, involving payments, receipts, purchases and sales, among other transactions. In its daily life, a company needs organization, not only in operations, but also in cash flow, which basically becomes an analysis of the available balance, for a correct and adequate balance sheet of how much capital the company has, where the resources were allocated and for what purpose. So, regardless of the size of the business, the entrepreneur has a complete picture of the company's financial health.
This financial management is essential to support assertive decision-making, so we leave here some tips on how to organize cash flow to help predict certain financial situations and plan, whether to solve problems, reduce expenses, unravel inventories, make investments or even apply for loans.
· Record inflows and outflows: it doesn't matter if the registration will be a sophisticated software or a simple cash flow spreadsheet. The important thing is to record everything possible, including small expenses that are often underestimated. Fixed and installment accounts must also be considered, this will help to project cash for the coming months;
· Define a period for your cash flow: it is important to consider that a single data may not represent much, so you should choose weekly or even monthly cash flow. For companies with a large daily turnover, the analysis works better on a daily basis, avoiding risks of losing financial control;
· Define categories of inflows and outflows: when categorizing inflows, correctly identifying the company's receipts allows for greater investments in what is due. In the outputs, the categorization helps to identify the expenses and their directions;
· Define reserve capital: reserve capital is essential to sustain the business during periods of crisis, it is risky to become dependent on monthly sales, for example, or on loans and personal finance;
In addition to these main tips, encouraging cash payments to ensure a simpler cash flow, keep a forecast of future payments and receipts, and always keep an updated backup of your spreadsheet to avoid data loss, are also measures that help with organization.
With an organized cash flow, you optimize your processes, identifying your company's financial bottlenecks, in addition to directing resources to areas that need greater investments and cutting back on those that are spending more than necessary.
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing, internal auditing, accounting, tax, 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.
