Cash Flow Management

236/- (incl. taxes)

Why do you need Cash Flow Management?

  • It helps in identifying the sources of cash inflow and outflow. This is essential to monitor the cash flow of the business
  • It helps in budgeting your cash requirements. It also helps to control business expenses and to set targets
  • It helps in avoiding cash shortages caused by a gap between cash inflow and outflow
  • It helps in tracking the outstanding payments and ensures cash availability for timely repayment
  • It helps in the understanding of cash movement in the business – i.e., whether there is an increase or decrease in cash (along with associated reasons). It helps to understand why there is a small cash balance in spite of sufficient profit, and vice versa
  • It helps in ascertaining the optimum cash balance of the business

Cash Flow Management Details

  1. Set of questions to identify cash flow problem
  2. Suggestions for improving cash flow
  3. Assistance through supporting tools & resources
  4. Inflow-outflow tracker with provision for budgeting

Cash flow is the money coming in and going out of the business. Most importantly, it is the cash you have in hand, to pay bills and keep your business running.

It is the process of tracking how much money is coming in and going out of the business. This helps to analyse the optimum cash need of the business. It also helps to predict the future cash needs and to budget for the same.

Cash Budgeting is estimating your future cash needs based on your current cash inflow and outflow. It is an essential step to ensure that you always have sufficient cash to repay outstanding dues and avoid cash shortage.

– Overestimating future cash inflows
– Keeping insufficient cash reserves for unexpected or unplanned expenditure
– Not keeping buffer-time to realise debts
– Not considering the seasonal trends when budget cash inflows