Cash Flow Management
Getting real time information on your cash flow is vitally important to ensure you can cover your upcoming expenses. Without timely cash flow reporting you are flying blind. For example you have certain fixed costs that must be covered every fortnight, monthly and quarterly such as wages, rent and utilities, to name a few. It is important to manage cash flow to cover fixed costs and contribute to your variable costs. The timing of anticipated receipts must be forecast and matched against anticipated expenses to ensure there will be enough cash available when needed to effectively continue business operations. If a shortfall is identified from the cash flow analysis, plans can be made in advance to resolve the cash flow shortage.
Online bookkeeping software allows for efficient and timely cash flow reporting as the cash flow reports can be produced from the sales invoices and bills entered into the system. Therefore the cash flow management report can be produced for minimal cost and maximum benefit.