Cashflow is the lifeblood of any business, you might be able to operate for a short period of time without any profit but take away the cash and your business is in trouble.
For a small business owner it’s crucial to monitor the cash flow of the business on a regular basis, yet despite this it can often be neglected.
The reasons for this tend to be a lack of time or knowledge to monitor it yourself and not having the budget to employ an accountant to monitor it for you.
However, in the past couple of years a variety of cash flow monitoring software has come on to the market, which removes the barriers previously facing entrepreneurs.
Cashflow software works by connecting with your online bookkeeping software to extract your business transactions. With this data the software can show current performance against budget and can even predict the business’ future cash position – helping you to pinpoint and plan for any tight points.
Cashflow software can even help you to plan your business growth strategy. This is because it allows you to play around with scenarios to see the instant impact they would have on cash. Common scenarios might be what happens if sales increase by 10% or how will employing a new staff member affect cash flow.
Utilising software means business owners no longer need to spend hours pouring over spreadsheets long into the night, and the chance of making an error is eliminated completely.
Software is making it easier than ever to keep an eye on your business cash flow, making sure your business remains in the green and keeps growing.