Tip of The Day #11 - How Much Money Does Your Business Really Have?
Barbara Steckly
Have You Ever Wondered How Much Money Your Business Really Has?
Not knowing the difference between your cash flow and your bank balance can quickly lead to disaster.
Your online bank balance does not show cheques that have not cleared nor deposits in hand but not made. Nor does it show upcoming obligations such as rent, utilities or next weeks payroll run.
That information will be recorded on your cash flow statement. So before you spend money you may not have, prepare a weekly cash flow report. Remember your accounts receivable is not cash you can count on until it is in your bank. Weekly cash flow reports can be prepared by your bookkeeper. You can then plan for both those major expenditures and regular cash commitments.
Preferred Client Services, partnering with you, your Edmonton business, your team and your accountant to make a positive difference in our bottom line.