Managing Cash

Growing up in a small restaurant business in Southeastern Colorado, a successful business for more than forty years, cash was King!  Every night we made a deposit to our bank, and every morning we checked the balance of our business account to make sure the deposit accurately reflected our balance. 

We did this every time we made a deposit...managing cash was one of the most important activities we did on a daily basis.  We did this every day for forty years.

In today's economy, cash is ever more important, as a business owner you need to stay on top of cash management and ensure you have the proper tools in place for you to be successful in managing your cash. 

Here are a few quick tips to help you manage cash. 

• Create a Budget
• Track your Receivables
• Keep your Invoicing up to-date
• Define your Payment Dates
• Forecast your Cash Flow - use the most recent data and consider seasonal and one-time adjustments.
• Create a simple spreadsheet in Excel
• Use your accounting system, like QuickBooks, to help maintain your cash flow.
• Talk with your Business Banker about a Line of Credit.

Help yourself be successful by using a standardized accounting system, like QuickBooks, integrated with your cash flow projections you prepared in a spreadsheet, and make sure you know the status of your invoices.