Cash Flow Management Reporting for My Business?

Cash Flow and Profit and Loss Binders sit on a desktop next to a customized cash flow management report

Do you know how healthy your business cash flow is? Very often the success of a business depends on how well your cash flow is managed while making sure you have enough money coming in to pay for the money going out.

Working with many different types and sizes of companies has shown me some consistent areas that prove to be challenging reporting areas for all businesses, whether they are startups or an established corporation. Having accurate cash flow management reports allows you to make adjustments when necessary before blowing the budget!

In new businesses, there are startup costs, equipment purchases, all kinds of fees and licenses, insurance, and other overhead expenses. At some point there will be new products or services, new product launches, and for companies expanding their businesses there will relocation costs, and all of these moving parts creating a flurry of expenditures requiring careful tracking and management to ensure that the expenses fall within the budgeted amount for each project.

Cash Flow Management Reporting is a reporting service that a really great bookkeeping service will offer its clients. It allows you to forecast known expenses and formulate budgets for projects. Based on your specific needs, customized reports are generated that allow you to track and manage your money’s movement into and out of various accounts, enabling you to identify liquidity issues and view a project’s rate of return or value. Cash Flow Management Reporting also allows you to determine the timelines of cash flows in and out of projects.

These reports can be run weekly, monthly, and quarterly, reflecting cash inflows and outflows for a specific period of operating, investing, and financing activities allowing you to:

  • Evaluate the ability to meet financial obligations
  • Explain the reasons for differences between reported and related cash flows
  • Describe the effect on cash flow related to financing activities

Weekly cash flow management reporting is great for managing a new project or a product launch that you need to pay close attention to. Knowing weekly where you stand against the forecasted budget allows you to pivot when you need to make adjustments to keep costs in line to meet your financial goals.

I’ve seen the reverse happen when a project was not managed through timely cash flow management reporting and once the expenses (overages) are made, there is rarely a way to recoup the loss. Knowing how much you are spending and what cash is coming in will help you be a better financial forecaster for future projects. Banks and other lending institutions will appreciate your ability to stay within budgetary goals. This may even be a deciding factor on whether they will finance a new project or product!

EVA Business Solutions love to help our clients create profitable businesses! We are a virtual bookkeeping and accounting service ready to assist you with all of your bookkeeping needs. We help you decipher profit and loss and balance sheet reports and create custom cash flow management reporting tools so you can budget and forecast according to your specific goals. Call us today at (615) 461-7157.

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