How do you manage daily Cash Flow?


The best way to manage daily cashflow is to run a daily Cash Flow forecast.  As per the answer to FAQ re ‘What information is required to prepare a Cash Flow forecast?’  Use this report on a daily basis.

When a business is in severe Cash Flow stress, this is a very useful tool.  It enables you to manage the situation on a daily basis.  You can see when you are able to pay people based on the daily balance.  It shows where you need to speed up funds coming into the business e.g. chase customers for payment or inject funds from shareholders or outside lenders/investors.