Have you ever wondered what cash flow means and how it impacts your business?
If you have, never mind, we’ll demystify it right away!
Think of ‘cash flow’ as a picture of your business bank account. If more money is coming in (payment for products or services) than is going out (payments for expenses) you are in a “positive cash flow” situation and you have enough to pay your bills.
However, if more cash is going out than coming in, you are in a “negative cash flow” situation and you will need to find money from external sources to settle your bills.
Knowing the cash flow status is very integral in the smooth and continuous running of any organisation; asides from it greatly helping planning, it reduces the chances of the business getting stranded or suddenly going bankrupt.
Because a sale doesn’t necessarily translate to an income and due to this, an account receivable report is vital.
The report above is an example of an account receivable report that shows which customers that might be owing, what is being owed and the duration that the payment has been outstanding. Therefore it can be used to determine if the business is able to survive more credit sales.
Do you need help with your cash flow? Talk to us at DataXpert today!
With our customized reports, DataXpert aims at providing business insights to give you an edge over your Competitors.