If you’ve been trying to get your small business on its feet for a while now but you seem to be just treading water instead of making progress (and money), you may be suffering from one (or some) common cash flow issues!
But before we get into it, let’s explain what cash flow is.
What is Cash Flow?
Cash Flow is the flow of money moving in and out of a business and a cash flow statement is a report which lists the cash that flowed in and out of your business and the timing of each flow.
There are two types of cash flow and each can have different problems. First, there are net cash inflows (which keep track of money coming in to your company) and net cash outflows (which keep track of money going out of your company).
Cash Flow Issues
The most common issue facing small businesses and large businesses alike is timing. If there is an inconsistency between your inflow and your outflow, there could be a problem. Counting on your revenue from accounts receivables to come in on time to make important payments is a risk.
If you’re still waiting on your cash inflow by the time you have to pay your staff salaries and rent, then you may come up with negative operating cash flow.
Not Enough Sales
Another reason your cash flow may be suffering is that you’re simply not making enough sales to cover your out flow.
How We Can Help!
At ABJ Business Solutions, not only do we provide bookkeeping services to help you create cash flow reports monthly or daily, but we also provide helpful services like cash flow forecasts which will allow you to look ahead and manage your cash accordingly. So, if you’re ready to take control of your business’s cash flow, get in touch with us today!