This presentation goes over effective cash flow management, strategies to manage payables/receivables, budgeting tips, and online tools. Learn the basics of cash flow management and how to prepare your business for sustainable growth.

1. Small Business Cash Flow Management

2. Small Business Cash Flow Management
2
What we’ll discuss today
• The importance of effectively managing
cash flow for your business
• Strategies to help manage payables and
receivables
• Budgeting tips to help you take control of
your business's cash flow
• How to help streamline the cash flow
process by using online tools

3. 3
Cash flow management includes:
• Understanding your business's cash reserves
• Managing payables and receivables
• Forecasting
• Maintaining financial statements
Cash flow can be difficult for small
business owners. It can take years
to realize the importance of
managing your cash on a weekly
or daily basis.
Small Business Cash Flow Management

4. 4
Why is cash flow management
important for your business?
Businesses only doing cash flow planning
once a year have a 36% survival rate over five
years. This contrasts with those planning
monthly, which have an 80% survival rate.
Source: Dun & Bradstreet’s Business Failures and Start-ups
Analysis (2012)
Small Business Cash Flow Management

5. Managing receivables (cash in)

6. Managing receivables
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Convert to cash quickly
• Make check and cash deposits daily
• Use remote deposit
Accept debit/credit cards
• Expands customer base
• Creates competitive advantage
• Increases customer spend
Accept mobile payments
• Broadens customer base
• Offers more transaction options
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7. Managing receivables
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How can you get paid faster?
Invoice often and accurately1

8. Managing receivables
8
How can you get paid faster?
ollct part of your payment up front
Invoice often and accurately1
Collect part of your payment up front2

9. Managing receivables
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How can you get paid faster?
Invoice often and accurately1
Collect part of your payment up front2
Set payment terms and enforce them3

10. Managing receivables
10
How can you get paid faster?
Invoice often and accurately1
Collect part of your payment up front2
Set payment terms and enforce them3
Go after receivables4

11. Managing receivables
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How can you get paid faster?
Invoice often and accurately1
Collect part of your payment up front2
Set payment terms and enforce them3
Go after receivables4
Encourage your customers to use
electronic payment options5

12. Managing payables (cash out)

13. Managing payables
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Strategies to help control spending
Manage your expenses1

14. Managing payables
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Strategies to help control spending
Manage your expenses1
Control authorized purchases2

15. Managing payables
15
Strategies to help control spending
Manage your expenses1
Control authorized purchases2
Stretch out your payments3

16. Managing payables
16
Strategies to help control spending
Manage your expenses1
Control authorized purchases2
Stretch out your payments3
Make payments electronically4

17. Managing payables
17
Strategies to help control spending
Manage your expenses1
Control authorized purchases2
Stretch out your payments3
Make payments electronically4
Double-check your invoices5

18. Managing payables
18
Strategies to help control spending
Manage your expenses1
Control authorized purchases2
Stretch out your payments3
Make payments electronically4
Double-check your invoices5
Use credit cards to delay payment6

19. Managing payables
19
Strategies to help control spending
Manage your expenses1
Control authorized purchases2
Stretch out your payments3
Make payments electronically4
Double-check your invoices5
Use credit cards to delay payment6
Time commissions and bonuses7

20. Managing payables
20
Strategies to help control spending
Manage your expenses1
Control authorized purchases2
Stretch out your payments3
Make payments electronically4
Double-check your invoices5
Use credit cards to delay payment6
Time commissions and bonuses7
Make foreign payments in local currency8

21. Tracking and forecasting cash flow

22. Tracking and forecasting cash flow
22
Cash in/cash out spreadsheet—
keep it simple:
• Log the date and source of all cash inflows
• Log the date and source of all cash
outflows
• Note any patterns in both
• Set up a reporting system to track cash
flow moving forward and to keep your
statement up to date

23. Tracking and forecasting cash flow
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Three financial statements and their importance in managing cash flow:
Balance sheet
• Assets
• Liabilities
• Net worth
Income statement
• Expenses
• Revenue
• Profit
Cash flow statement
• Positive/negative cash flow
Balance Sheet
Income
Statement
Cash Flow
Statement

24. Tracking and forecasting cash flow
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Forecasting best practices
Keep an eye on the big picture1

25. Tracking and forecasting cash flow
25
Forecasting best practices
Keep an eye on the big picture1
Know your company’s infrastructure2
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26. Tracking and forecasting cash flow
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Forecasting best practices
Keep an eye on the big picture1
Know your company’s infrastructure2
Have the right banking structure3

27. Tracking and forecasting cash flow
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Forecasting best practices
Keep an eye on the big picture1
Know your company’s infrastructure2
Have the right banking structure3
Classify and label bank accounts4

28. Tracking and forecasting cash flow
28
Forecasting best practices
Keep an eye on the big picture1
Know your company’s infrastructure2
Have the right banking structure3
Classify and label bank accounts4
Establish clear accountability across
your organization5

29. Tracking and forecasting cash flow
29
Forecasting best practices
Keep an eye on the big picture1
Know your company’s infrastructure2
Have the right banking structure3
Classify and label bank accounts4
Establish clear accountability across
your organization5
Establish regular routines and
communications6

30. Tracking and forecasting cash flow
30
Forecasting best practices
Keep an eye on the big picture1
Know your company’s infrastructure2
Have the right banking structure3
Classify and label bank accounts4
Establish clear accountability across
your organization5
Establish regular routines and
communications6
Measure success7

31. Tracking and forecasting cash flow
31
Forecasting best practices
Keep an eye on the big picture1
Know your company’s infrastructure2
Have the right banking structure3
Classify and label bank accounts4
Establish clear accountability across
your organization5
Establish regular routines and
communications6
Measure success7
Expect the unexpected8

32. Tracking and forecasting cash flow
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Basic steps for forecasting
• Itemize fixed expenses
• Allow for future expenses
• Review financial statements
• Log your expected income
• Do market research to gauge the possible impact
of external circumstances on your cash flow

33. The importance of online banking

34. The importance of online banking
34
Start doing your business banking online
• Use electronic payments
• Access account information online
• Set up alerts and notifications
• Run reports
• Review historical information
• Take advantage of security and fraud protection

35. Thank you
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