The saying, cash is king is a tremendous understatement when it comes to running small businesses. This is especially true in tough times, and by the way, if you haven’t noticed it, many small businesses are struggling right now.
Many business owners don’t really know the difference between profits and cash flow. I like to say, “you feed your family with the profits from your business, but you keep the doors open with cash flow.”
In my many years of banking and business consulting, I have learned that understanding cash flow and understanding how to predict it and manage it are one of the most important survival skills a business owner can learn. The ultimate product of understanding cash flow is a cash flow forecast. I have designed a very good cash flow forecast template for Allbusiness readers. It is in Excel format and has directions in it to make it easier to use.
Before you can design your company’s cash flow forecast, you have to understand the elements of cash flow and how to manage it, rather than letting it manage you.
Once you understand the fundamentals of cash flow and start using your own forecast on a weekly basis, you will quickly feel more able to make good decisions about managing it.
Cash flow forecasting is especially important if your business is seasonal, has recently had or is having a few years of uneven revenues, or if your business is growing very rapidly.
Tomorrow, Tuesday August 26, 2008 at 10 AM CDT, I will be teaching a FREE one hour webinar on the fundamentals of cash flow forecasting. If you find yourself scratching your head wondering why you are making a profit but having problems paying all your bills, you owe it to yourself to spent 60 minutes with me.
Here are additional details. At the bottom of this article is a like you can use to email your free reservation to attend.
8/26/2008 Free Small Business Webinar
Topic: Fundamentals of Cash Flow Forecasting
Time: 10:00 AM CDT
Time: 50 minute presentation, 10 minutes Q&A
Instructor: Sam Thacker – Business Finance Solutions
Intended Audience: Small business owners, their controllers, accountants, and CPAs.
Description: Cash Flow is so important for small businesses with limited capital, but most business owners don’t know completely how it works and inter-relates with revenues and profits. When companies are growing fast, having tough times due to the economy, or when they are experiencing seasonal or cyclical sales, effective cash flow forecasting can give owner’s piece of mind and allow them to better manage their business. This 50 minute webinar will focus on the differences between profits and cash flow, the forces that affect cash flow, how to improve cash flow, and lastly, familiarize a business owner or bookkeeper with the methods of doing their own cash flow forecasts. An Excel (XLS) cash flow forecast template will be provided to participants.