There are a number of important tasks to be included in a small business cash flow management system. Some daily tasks, some are weekly and others every month. Determining who is responsible for the tasks and regularly checking that their work is complete is good management. Be proactive in knowing what cash you will need in the future.
To managing the cash flow of a business, in daily operations, it is important to include the following tasks:
1. Prepare and review your Cash Flow Plan every week. How much cash do you start money that is due and money that is due?
2. Reconciliation of your cash taken every day including payments received from credit cards. Monitor your internal controls for handling cash. Ask different people to reconcile your bank and cash accounts with those who deposit checks and cash.
3. Review your Profit and Loss at least every month. It's best to prepare your P&L at home or have your accountant do it for you, but don't wait too long.
4. Review your balance sheet every month. Calculate your fast ratio (liquid assets divided by current liabilities) – must be greater than 1 and your current ratio (assets divided by liabilities) – at least 2 to 1 is good.
5. Make sure excess cash makes you interested and is also easily accessible.