We are well into the new year and, in all likelihood, you started off the year planning to reach certain financial goals and revenue targets. Before the year gets too far along it’s good to take stock of whether you are heading in the right direction regarding the revenue and cash flow goals you set for your business back in January.
The funny thing is, many small business owners won’t really know the answer. Oh sure, they have a general idea if they are having a good or bad year, but a solid understanding, based on sales, expenses, and especially cash flow? Maybe not so much
- Check out our infographic on creating a balanced cash flow cycle
Cash management is one of those things that small business owners know that they should know, but many do not. And that actually is quite understandable as the vast majority of entrepreneurs did not go to business school and financials, cash management, profit and loss statements are not something that they have managed before. The problem is, not knowing where you really stand financially can undermine your business.
Cash flow is the lifeblood of any business, and you cannot really have a good understanding of whether you are meeting your goals for the year or not if you do not have a handle on these sorts of financial snapshots. It is not just a matter of checking your bank balance either, that’s for sure.
So how do you know if you are on track to meet your revenue and financial goals for the year? How is your cash flow situation looking? If you are not sure, I have good news for you.
Our friends at Bank of America recently launched a new product called Cash Flow Monitor.
Cash Flow Monitor is a digital dashboard available in Online Banking and Mobile Banking, designed to make it easy for small business owners to manage the various financial aspects of their business. Available to any Bank of America client with a business account, Cash Flow Monitor provides a view of business cash flow and access to real-time expertise and guidance – all in one simple tool.
Specifically, Cash Flow Monitor
- Graphically displays cash flow projections based on scheduled transactions
- Integrates account information making it easy to keep track of credits and debits
- Manually adjusts your projections with additional data like new sales
- Lets you set cashflow thresholds, displays them graphically and alerts you with enough time to make proactive adjustments
- Helps you to quickly access experienced small business bankers to help you optimize how you use Cash Flow Monitor
Here are some tips for avoiding a cash flow crunch.
Let me add one last thing. If you feel like you need a little extra help with getting started, why not pick up a book? Cash Flow for Dummies by John A. Tracy will give you a nice overview of various accounting topics and some insight into how cash flow fits into the big picture.
So, are you meeting your revenue goals for the year? If you can pull out your smartphone and take a quick look at your cash flow at a moment's notice, you will be one step ahead of the game.
About Steve Strauss
Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business Success.© Steven D. Strauss
Bank of America, N.A. engages with Steve Strauss to provide materials for informational purposes only, and is not responsible for, and does not guarantee or endorse any of the third-party products or services mentioned. All third-party logos and company names mentioned herein are the property of their respective owners and are used under license from Steve Strauss.Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.
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