Essential Capabilities for Cash-Flow Tools

What should you look for in a program helping you manage your cash flow? Here are some essentials, and some supplementals.

Essentials

A good cash-flow management system should be easy to use, offer flexible "what-if" and reporting options, and allow you to update projections once actual results are available.

The importance of ease of use depends on how frequently you need to use your cash-flow management system. Many businesses will calculate and update their cash-flow projections monthly. A few small or cash-flush businesses may only need to look at it once a quarter. Larger companies, or ones walking a financial tightrope, may manage their cash daily. If you need to use your cash-flow tool often, you will learn its ins and outs and capabilities over time and become expert in its use. If you use the tool only occasionally, then it's very important that it be easy to use effectively, because you don't want to have to relearn a complex tool each quarter.