- Do a cash flow projection
It’s important to do a cash flow projection for cash management. This tells you how much money will be coming into your business and going out of it and can allow you to plan for the future.
Do not confuse a cash flow projection with a cash flow statement. The cash flow statement shows how cash has flowed in and out of your business. In other words, it describes the cash flow that has occurred in the past. The cash flow projection shows the cash that is anticipated to be generated or expended over a chosen period of time in the future.
A cash flow projection won’t in itself improve your cash flow but it will help you understand, and manage it.
Follow the 31 day Cash Flow Challenge here and on Facebook.
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