One of the top focus points for business owners is to manage, control and improve their small business cashflow. I have written numerous articles on this topic, and will continue to do so as it is simply that important, I want to keep it top-of-mind for all readers and listeners.

With only a couple of weeks until Christmas, small business cashflow is bound to be all over the shop with your business either ramping up to deal with the end of year madness or winding down to enjoy a bit of a break. Stay tuned for a soon to be released Christmas Cashflow Special to help you navigate the seasonable changes to your cashflow.

In preparation, let’s revisit some of our favourite small business cashflow articles:

Most small business owners simply use their bank account to determine their cash situation which is fought with danger. This does not clearly show the cyclical cycles of cash: e.g. payroll is fortnightly, average debtors pay in 40 days, you pay suppliers in 30 days, superannuation is paid quarterly plus you then have your quarterly activity statement and annual income tax; so it is clear that all the timing of these cashflows are different and hard to visual.

We use a financial dashboard that gives you a forecast of how your cash will look, taking into account all of the above different timing of cash movement. Here’s what it can look like:

cashflow forecast virtual cfo

By having this dashboard in place (which conveniently plugs into Xero and updates every few hours) you can have a quick look whenever you like, or wherever you like, to see what your future cash position looks like. This avoids any unnecessary stress around paying bills and paying the tax office but empowers you to make the most of your cash but NOT overspend and leave yourself up the creek.

Brad Turville

Author Brad Turville

Virtual CFO @ BJT Financial Services. I specialise in working with small businesses to improve their condition through what I have found to be 8 key areas because I believe a small business should reward you richly in time and money.

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