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Tools and tips for cash flow management

Here are two cash flow management tools you can start using straight away, plus tips for responding to dips in cash flow and encouraging long-term growth.

At a glance

Here’s a snapshot of the article’s insights:

  • Get started on consolidating your business’s bottom line with our cash flow forecast template and profit and loss projection tool.
  • Choosing an appropriate pricing strategy can be critical to get the most value out of your products or services and therefore boost cash flow.
  • If keeping track of revenue and expenses is proving tricky, consider hiring a professional.
  • If you have a cash reserve to fall back on during challenging times, you won’t regret it.

Managing cash flow is a priority for many small businesses, with 17% of small business owners saying cash flow and business demand are the number one concern they are facing.* 

Here are two cash flow management tools you can start using straight away, plus tips for responding to dips in cash flow and encouraging long-term growth. 

Tools for managing cash flow 

Get started on your long-term cash flow management straight away with these easy-to-use tools from Prospa. 

Cash flow forecast template 

A cash flow forecast is an indicator of the business’s future cash position. Among other things, it can help you to predict a cash shortage or surplus, and compare income and expenses for different periods. 

With its instant calculations, a cash flow forecast calculator can help you spot trends and tackle cash flow issues before they become a crisis – strengthening your business’s base as you approach the end of the year. 

Use the tool here. 

Profit and loss projection tool 

Not only can a profit and loss projection tool help you see how your business model is faring with a few quick expense calculations, but it can also help you look to the future and develop projections, sales targets, and pricing for goods and services. 

Use the tool here. 

Make the most of your cash flow forecast by: 

  • Choosing a regular cadence and sticking to it 
  • Make forecasting a team effort by consulting your employees, if you have them 
  • Using digital tools, such as your accounting software 
  • Taking the findings and feeding them back into your sales strategy 

Top tips for cash flow management 

If you take nothing else from this article, it’s the following tips for managing cash flow. 

Use an accountant 

If keeping track of revenue and expenses is proving tricky, consider hiring a professional to assist you in understanding the cash flow impacts that your business may face as we head into the end of the year. 

Think about pricing 

Choosing an appropriate pricing strategy can be critical to get the most value out of your products or services; boost cash flow and earn your desired profit; compete with rival businesses; and avoid overcharging your customers and suppliers. 

Get smart with your invoicing 

Have a disciplined approach to keeping the books up to date, prompt invoicing, and clear payment terms so payments are made in good time. 

Review business budgets 

Spend wisely. Review any technology and software subscriptions, stay on top of stock management, and consider the potential return of any expenditure. 

Save 

It might seem like saying the obvious, but if your business has a cash reserve to fall back on during challenging times you won’t regret it. 

Further reading 

Finally, available on the Prospa blog are all manner of insights from small business owners about how they’ve boosted cash flow for steady but sure growth. Read about how: 

Consider how these suggestions might be relevant to your business and could inform future planning. 

*RFI New Zealand SME Banking Council, May 2023 

 

The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.