A Report a business must do each week (or even more regularly)

August 4, 2009 · Filed Under Key Performance Indicators, Small & Medium Businesses · Comment 

We all know Cash is King so why is so many business are not keeping a very close eye on it?

Where is the cash.

Where is the cash.

It is important to understand the exact cash position of the business every week if not every day. Additionally we need to understand what is affecting the cash position of the business.

So to understand the cash position I recommend that the financial accountant / controller/ bookkeeper of the business prepare a Cash Flow report.

This report would detail the following :-

  • Opening Cash Balance last week
  • Cash inflows received this week
  • Bills / expenses paid this week
  • Current Cash balance
  • Expected cash inflows in the coming week
  • Required expenses to be paid in the coming week
  • Expected cash balance next week.

This simple report explains what happened last week and what is expected to happen next week. Also you can add to this report by comparing last week report to this weeks to see how close the prediction was and if there was any lessons to be learnt from this. The report can then be used to make decisions and take actions. You can’t do anything about improving cashflow if you don’t know what it is it now.

My question to you is how are you measuring your cashflow and would this report help you?

Image credit: mindluge

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