Get Better at Predicting Cash Flow

As a fractional CFO, I can say with confidence that knowing your business's cash flow is essential to making informed decisions and ensuring financial stability. The following are five steps I tell my clients to take so they can forecast cash flow effectively, enabling them to hire key employees, secure millions in additional funding ahead of critical growth phases, and make strategic cuts before financial challenges escalate.

- Luke Templin

TRACK WEEKLY INFLOWS AND OUTFLOWS

Begin by recording all the money coming into and going out of your business each week. The goal is to determine how much cash you have available at the end of the week. You can use a simple spreadsheet or automate the process with an app like FinDaily. Consistent tracking provides a clear picture of your financial activities and effectively manages your bookkeeper.

START WITH AVERAGES