How to Manage Cash Flow with One Report


Revenue is vanity. Profit is reality. Cash is king. It’s true, especially to a small business. In this episode, we’re introducing a simple report that helps you successfully manage cash flow. A simple report that can be done by the first year accountant! Without further due, Let’s roll!

Why should you be mindful of cash flow?

[00:11] As a small business owner, cash is one of the most important resources to the small business. The day you run out of cash will be the day your business is closed. You need to pay your debtor, your employee, bank etc. So how can you do that?

How to manage cash flow with one simple report?

[00:43] Have your accountant to prepare you a two-week cash forecasting. Two-week cash forecasting report should contain three things.

  1. Today’s Cash Balance — The balance you have in your bank. 
  2. Cash Outlay over the next two weeks.
  3. Cash Inflow over the next two weeks. 

[01:00 ] We usually pay payrolls every two weeks. And this is what happens if you only pull out data for a week:

Let’s say you have $100,000 in the bank… and some basic bills for $30,000 for this week. You may think,” Life is pretty good.” Then, next week you may realize you have $130,000 to pay.  You may not have enough time to react. So, two week is far enough, and not guess too much. It’s a healthy time being for us to strategize, and manage cash flow.

Last but not least, keep your cash outflow simple!

Three categories for Cash Outflow:


  • Basic Bill
  • Personnel Payroll Expense
  • Repayment of Debt

If you can’t pull it together within five lines, or ten lines, ask for your accountant. Even the first year accountant should be able to help you with this and have you to review this report on weekly basis.