Control Cash Flow with This Simple Tool

7 Mar

Many small businesses struggle with managing cash flow….especially in the economic climate as of late.   I recently visited a company that manages cash flow on a daily basis….as in they look no further  than TODAY!  Some weeks they’re not sure if they’ll make payroll.   It’s no wonder that they are having critical money management issues and will soon be forced into layoffs.

A simple tool commonly known as a 13 week rolling cash-flow can be very useful to companies in such a cash-flow predicament.  It forces management to look at the bigger picture over three months; and clearly illustrates with ample response time to a cash shortage problem.   This tool can be developed very easily in excel with a little spreadsheet experience  or a customized template that can be purchased.   In either case, some resources will be needed.  But it can be the smallest of investments that can yield the greatest of returns.

So, if you’re needing to manage cash-flow a bit better, you may give consideration to a 13 week rolling cash-flow tool.  It could be the difference between making payroll or sleepless nights followed by stomach ulcers.   It’s all about choices; Just saying….


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