Digital tools make it easier to master financial ins and outs of your business
- Up to 82 per cent of business failures can be attributed to poor cash flow management, study shows
- Firms that digitise accounting and use complementary apps can conduct financial forecasting to plan ahead
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While checking how much money comes in and goes out might sound like a simple and straightforward affair, it can be easily neglected amid the day-to-day running of the business and fall behind because of how administrative and time-consuming it can become.
Company owners who are not adept at accounting may also find it challenging to organise the transactions they need to record, such as sales, supplier payments, and non-recurring costs.
Here we’ll discuss how to do cash flow analysis and improve cash flow management using digital tools. But first, let’s examine the risks that poor cash flow management poses to your business.
Over expenditure: When a business neglects cash flow management, it can find itself spending beyond its means. It can be tempting to hire more staff, invest in a bigger marketing budget to engage a famous influencer, or deck out your office with pool tables and free lunches.