Do You Have Any QuickBooks Tips for Managing Cash Flow?

Ryan Dumermuth | December 26th, 2012

Cash flow management is a struggle for many small businesses.  Unlike revenue, cash flow isn’t easy to quantify or pin down.  It’s up and down and moves around.  But, most small businesses that fail do so because of a lack of cash flow… not revenue or profits.

Thankfully, QuickBooks makes cash flow easier to understand.  Using a few simple reports, QuickBooks can help you to understand your past cash flow and predict what it could be like in the future.

  1. Use the Statement of Cash Flows feature.  It’s hard to manage your cash flow when you don’t know where your cash is going.  A backwards looking report, the Statement of Cash Flows can help you to understand where your money’s gone in the past… which might help you to plan for where it will go in the future.
  2. Use the Cash Flow Forecast report.  Do you know what income’s about to come in?  Do you know what bills are coming due?  With all the ins and outs coming up, are you sure that you’ll have enough cash in the back at any given time?  A forward looking report, the Cash Flow Forecast can help you to make sure that your account always has a positive balance… and could help you prevent costly overdraft fees.

Both the Statement of Cash Flows and Cash Flow Forecast reports can be easily accessed.  Just go to the Reports menu, select Company & Financial, and then chose the report that you’d like to run.

Once you have a baseline understanding of your cash flow you can set about to improve it, and track the improvement through QuickBooks.

Contact our Ohio QuickBooks ProAdvisors

Looking for some more QuickBooks tips?  If you need help getting started on QuickBooks, or learning to use some of the software’s more advanced features, contact Rea & Associates.  Our certified QuickBooks ProAdvisors can help with consultation, set-up, training, and support.

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