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Just realized most small businesses fail because of cash flow, not profit
Read a study from the Federal Reserve that said 82% of small business closures are tied to poor cash management. Anyone have a simple system they actually use to track it?
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sandra91617d ago
That two week look ahead is key. I color code my bills red, yellow, green by due date so I can't ignore them. Makes you see the problem @the_mason mentioned, where the numbers work but the timing doesn't.
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cooper.max17d ago
My uncle's restaurant went under last year because of this exact thing. He was making money on paper but the bills and payroll all hit at the same time. I just use a basic spreadsheet now with two main parts. One tab is for all the money I know is coming in and when. The other is for every single bill and its due date. I look at it every Monday morning to see what the next two weeks look like. It's not fancy but it forces me to see the gaps before they happen.
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