Sunday, February 26, 2017

Smart Tips for Managing Small Business Cash Flow during Rapid Growth

You would think that an increase in orders and growing interest in your business would be good news all round as it means that your company is expanding, but without the right amount of cash flow to support that growth, it could spell trouble.

There are plenty of examples of business owners who have not been able to survive their growing pains because of a lack of cash to support their expansion, so you need to plan for what lies ahead.

Here is a look at some ways to keep on top of cash flow. There are some tips on keeping your business and personal expenses away from each other, an insight on what cash flow actually means, and details on how to produce a cash flow statement to help stay on top of your money.

Separating your expenses

If you are one of the millions of small business owners who finds their personal finances intertwined with your business expenses, it is time to get things sorted so that you are well placed to take your business to the next level.

It is far too easy to blur the lines between personal and business expenses, but you need to keep on top of both and know exactly where your finances stand at any point in time.

Maintaining a separate personal and business account will help create that distinction. You could also consider getting a credit card for your business so that you can organize your expenses more easily and see where everything is going and how much you are spending.