The most important money is the stuff that ends up in your pocket, right?
Understanding Cash Flow is the first step to understanding and growing your business
Adapted from the QuickBooks Resource Guide: The Beginner's Guide to Cash Flow, For the full article, click HERE.
Cash flow is the movement of cash in and out of your business. Cash inflows are your sources of income and cash outflows are your expenses.
Let’s say you own a donut shop. When customers buy donuts, the money they pay for the donuts generates a cash inflow. However, when you buy flour and other ingredients for your donuts, you are creating a cash outflow.
For small businesses, positive cash flow is the goal. You want to generate more money than you’re spending. This sounds simple, but plenty of profitable businesses run into cash flow problems. It can be challenging to balance regular expenses like salaries, rent and technology with irregular revenue. Many businesses will go through periods of negative cash flow because of seasonality or because they are investing in growth.
Achieving positive cash flow is one of the most impressive accomplishments in small business. But it can also be one of the most challenging to maintain.
The Solution: Keep your books accurate and up to date with JDBC Books Coaching.
Your cash flow is only as good as your accounting and reporting. Don't let this get out of hand. Make sure your accounting information is updated regularly. Then you can see the financial state of your business at a glance.
JDBC Books Coaching will help you learn how to navigate and understand your books, your cash flow and other business results. You'll learn how to manage your system, automate your money processes and keep your books accurate and current with minimal effort.
Schedule a no-obligation Books Analysis to see if Books Coaching with JDBC will work for you.