Entering Data to the cash flow Form:
You are monitoring the funds you have right now, so you need to enter today’s date.
Cash On Hand
Balance in bank at end of day yesterday
If you have internet banking you can quickly view what the bank balance was at the end of the day yesterday, in other words, the closing balance – which should actually be the same as the opening balance this morning depending how your bank operates.
If the bank has already cleared payments received or paid out this morning, then enter the balance at today’s date.
If you have have more than one bank account you can add the balance of all accounts together and enter the total.
If you don't do internet banking then this cash flow form will begin from the closing balance at the date of your last bank statement.
Add checks or cash received today, still to deposit to bank
If your customers have paid you by check or cash and you are holding those in your cash box, or somewhere in the deep, dark depths of your hand-bag, add them up and enter the total here.
Then make sure you go to your bank today and deposit them.
If you are not using internet banking you will keep adding a list of all checks or cash received from the date of your last known balance up to today.
checks You Have Issued
This is where you list the checks you have issued to other businesses and suppliers, who for some reason have not deposited your payments yet.
Maybe they have lost the checks in the deep dark depths of their hand-bags, (or maybe you only just paid them).
There is no need to put detailed information on this form because you can get that from your cash book or check summary/copy, or the invoice.
Simply enter the check numbers and amounts.
Bills to Pay
List out a summary of all the payments you know you have to make in the weeks ahead.
Enter the dates they are due for payment. Remember to include an estimate of bank fees.
When you see any balance in Column F turn red with brackets – this means the bank will go into overdraft at that date.
Of course, there is a strong possibility that you may receive payments from customers before that balance turns red so if you know you have a payment coming before the cash balance goes into the red – don’t panic!
However, below are some things you can do if you need more cash.
Cash Flow Improvement
You could do all of these, or a combination of some or just one thing– something that you know will help your situation.
- Contact all your customers that are overdue with their payments and ask for a payment date. Don’t be shy to do this and don’t let them intimidate you. If a customer is overdue with payment, they must be reminded about it. If they haven’t paid by the date they promised, phone them again. Check out some more debt collection ideas.
- Contact one or more suppliers and ask for an extension of time to pay your bill – even the tax department. Most will be happy to accommodate you as best they can if you let them know ahead of time that you are having cash flow issues, rather than simply not paying. By phoning ahead, you can avoid late payment penalties on some of those bills such as the power or telephone.
- As the business owner, introduce some cash into the business which can always be paid back at a later date when there are more funds.
- Arrange an overdraft facility with your bank so that you can pay your bills on time without being hit by hefty un-arranged overdraft fees.