How to Manage Cash Flow
Learn how to manage cash flow with our detailed step-by-step guide. Follow our easy instructions to get it done right.
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0 of 6 steps completedStep-by-Step Instructions
1 Step 1: Create Cash Flow Forecast
Step 1: Create Cash Flow Forecast
Project income and expenses for next 12 weeks to anticipate shortfalls before they happen.
Cash Flow Forecast Template
Excel template for projecting cash flow
Profit First Book
Cash management system for businesses
2 Step 2: Speed Up Customer Payments
Step 2: Speed Up Customer Payments
Invoice immediately, offer early payment discounts, require deposits, accept multiple payment methods.
Invoice Software
FreshBooks or QuickBooks for faster invoicing
Payment Processing Setup
Stripe or Square for accepting payments
3 Step 3: Negotiate Better Payment Terms
Step 3: Negotiate Better Payment Terms
Ask suppliers for Net 30 or Net 60 terms to delay outflows while collecting receivables.
4 Step 4: Build Cash Reserve
Step 4: Build Cash Reserve
Save 3-6 months of operating expenses as buffer for slow periods or emergencies.
Business Savings Account
High-yield savings for business reserves
5 Step 5: Monitor Cash Flow Weekly
Step 5: Monitor Cash Flow Weekly
Review bank balances, upcoming bills, and expected deposits every week to stay ahead.
Float or Pulse App
Cash flow forecasting software for small business
6 Step 6: Have Backup Financing Options
Step 6: Have Backup Financing Options
Establish business line of credit or credit card for short-term cash needs.
Business Line of Credit
Application fee for LOC (varies by lender)