{"id":281497,"date":"2024-08-16T17:45:22","date_gmt":"2024-08-16T05:45:22","guid":{"rendered":"https:\/\/www.reckon.com\/nz\/?post_type=sbh&p=281497"},"modified":"2025-02-06T15:11:39","modified_gmt":"2025-02-06T03:11:39","slug":"cash-flow-management","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/nz\/small-business-resources\/business-financing\/cash-flow-management\/","title":{"rendered":"Cash flow management"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f4f4f4″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Copy paste body text here” _builder_version=”4.27.0″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Having a firm handle on the theory and practice behind cash flow and cash management is central to your ability to run a profitable small business.\u00a0<\/span><\/p>\n

The term \u2018cash flow\u2019 is bandied around liberally whenever we talk about business health and profitability. But are you fully across how to manage your cashflow and tactics to improve it?<\/span><\/p>\n

Let\u2019s take a closer look at how to manage cash flow in a small business to ensure financial stability and promote growth.<\/span><\/p>\n

What is cash flow?<\/strong><\/h2>\n

Let\u2019s start with the basics \u2013 what is cash flow exactly?\u00a0<\/span><\/p>\n

The term cash flow refers to the regular inflowing and outflowing of money through your business.\u00a0<\/span><\/p>\n

The cash your business receives (generated by sales) represents your \u2018inflows\u2019. Conversely, money your busines spends on expenses such as running costs, wages, materials, and stock represents \u2018outflows\u2019.<\/span><\/p>\n

The goal of any business is to create <\/span>positive<\/span><\/i> cashflow, which speaks to profitability and the ability to cover outflows or debts. <\/span>Negative<\/span><\/i> cashflow is business poison and needs to be actively avoided as it represents an inability to cover outgoings and a lack of profits.<\/span><\/p>\n

Cash flow is the lifeblood of your business and your ability to manage it responsibly will be the difference between a successful business and a failed venture.<\/span><\/p>\n

How to manage business cash flow?<\/h2>\n

The ability to deftly manage your cashflow, with an eye on positive metrics, is a central business skill that can be learned. Let\u2019s investigate some key techniques and tactics to assist with cash flow management in your business.<\/span><\/p>\n