This month I’ve launched the Cash Flow Management Program. It’s a spreadsheet based program to track the movement of cash through your business. The program can be used as a planning tool, as a tool to know what your cash position is right now and to layout cash use “what if” scenarios.
The program has monthly sheets broken down by weeks with sections for income, variable and fixed expenses, labor costs, accounts payable totals, and gives you your cash position for each week of the month as well as a monthly total. And each of the monthly totals carries over to a yearly total sheet.
With this tool you can build weekly, monthly and yearly cash flow projections. Unlike typical cash flow projection reports from accounting programs you can look at each week of the month and know when your expenses are due, what your income is and where your cash position will be at the end of the week.
All of your cash flow information is assembled in one place. You can see your cash position at any time. You can update it rapidly and immediately know just how much money you have and or need today.
When you build your cash flow plan it is different than building your profit picture. Cash planning takes in account all the cash that goes in and out of the business when it is happening. The Cash Flow Management Program is set up to account for those cash movements. So when you pay your sales tax you record it in the month that you pay it and you record when you take the tax in. This is the same for insurance costs and labor costs.
This program is a great tool to add to your other financial tools, accounting program and sales tracking methods. It will complement your other tools by being the one place to see all the information gathered by your other tools. The program will work if you are in a small business, just starting a business, need to have a better handle on cash needs or have an established business and wish for a better planning tool.

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