Managing small business cash flow with easy-to-use tools

There are easy-to-use tools to manage cash flow for any business whether you’re the owner of a staert-up company, an independent contractor, or you’re a manager for a corporation and you need to manage your own budget or bookkeeping.

Don’t let tracking cash flow intimidate you or confuse you. It’s a necessary step that’s essential for running any type of business. A cash flow management tool will help you track receipts, expenses, and income. Without one, you don’t know the health of your business.

Start with the Small Business Bookkeeping System that is an easy-to-use spiral bound 8 ½ x 11 book.

It has two facing pages with money management categories for a weekly expense and income record:

• “General Expenses"

• “Inventory Expenses”

• “Equipment Property Expenses”

• “Payroll Expenses”

• “Weekly Income or Returns”

• “Expense Totals”

• “Income Totals”

Buy it new or used off of Amazon.

Log books are easy to keep in the glove compartment for tracking mileage. While you’re at it, order some extra pens to keep on hand. Write down the starting mileage, ending mileage and total it each week or each month. Keep a handwritten copy as proof of mileage in case of an IRS audit.

Calculators still work well especially if crunching numbers in the head. Keep one in the car and one in the desk.

Most computers come with an Excel spreadsheet which is a fairly easy tool to use for managing cash flow and finances. I’ve been thrown a curve by the current version of Excel so having a how to book on hand will simplify the use of Excel and get you using it easily.

Quickbooks is used by small and growing companies around the country. The fact that it is so widely used makes it good to implement whether using it personally or hiring a bookkeeper to come in and handle the task of entering receipts.

#1 The files accessed most frequently should be the ones closest to the desktop and given priority on being kept up to date.

#2 Toss out excess information. Make it easier by reminding yourself that most magazine articles or newsletter articles you might want to keep are found online or in the library. A really good article that sits buried under piles of paper may be well written and contain useful information, but how much good is it doing you?

#3 Set aside one hour per week to read outside of normal work assignments. Skim through articles and either file them right away or toss them.

#4 Ask for help - this may be difficult to ask a colleague. For the home office, the cost of hiring some one to come in help may be an expense that pays off in the long run.

#5 Archive old files and projects. Put them in a box, label them and take them out of an active file drawer.