Tips for Tracking and Managing Your Cash Flow

Money that is documented moving (or flowing) in and out of your company’s bank account is known as cash flow. It’s typically reported in your monthly cash flow statement. If your business has more cash coming in than going out, then it is in a positive cash flow position.

When outflow is higher than inflow, your business is in danger of falling into excessive debt or overspending, so you’ll need to devise various new ways to generate revenue to cover the shortfall. Understanding the best ways to monitor your cash flow will guarantee the smooth running of your business.

By doing so, you can recognize where your business might lag and where adjustments are needed. Keeping your account balance intact is among the most crucial objectives for your company to consider.

Tracking Cash Flow Step-by-Step

Cash inflows and outflows are tracked to manage and supervise a company’s cash intake and spending. Cash comes into the business through sales, revenue payments, and investment interest but leaves the company when paying for operating expenses and other costs.

Reviewing what’s coming into the business and what’s coming out of it is part of monitoring finances for a company as the owner. To keep an eye on cash flow through your business, you will first draw up the history of all your company’s financial transactions.

With expense reports and source documents, keep track of all revenue and investment earnings. Maintain and compile this financial information daily or weekly and update it into a spreadsheet to create a cash flow. Make an account of cash coming in and going out of the company. Set up financial projections detailing the cash flow of operations in the company.

Manual vs Automatic Tracking

Manual cash flow tracking is known as collecting, organizing, and recording all of this financial information by hand. Small businesses may manually track and monitor cash flow using Excel Spreadsheets or Google docs. You must perform your calculations when performing manual cash flow tracking. Most useful cash flow formulas include working capital, net cash flow, and free cash flow.

For many companies, manual accounting is not possible. They can’t provide the human resources, time, or resources to monitor their finances by a hand closely. So instead, businesses turn to financial software to track their finances.

The software and applications associated with automatic cash flow tracking help automate the tracking and charting of a business’s cash flow by applying all data relevant to bank accounts and business funds.

Moolamore is the best app for tracking cash flow.

When you want to select a software program that will help your business improve its cash flow management, you’ll want to choose one compatible with your existing system. Using such software, you’ll be able to help your company reduce its negative cash flow into a positive one. In addition, tracking your cash flow will enable you to identify areas of improvement in your financial management practices.

Moolamore offers a platform that includes all kinds of accounting and bookkeeping solutions for small and medium-sized companies. This platform encodes the entire set of accounting and bookkeeping services, ranging from long-term frequency to daily reports of financial transactions.

Monitor cash outflows, such as operating expenses necessary to run a business with expense tracking, and track cash inflows through accounts receivable and invoice tracking. Moolamore will help you create cash flow statements, cash flow analysis, income statements, balance sheets, and profit and loss statements smoothly.

Moolamore enables cash flow assessments and forecasts, allowing you to play out cash flow scenarios to foresee different financial problems your business may face.

Tips for Managing Cash Flow

Monitor Your Cash Flow Regularly

It is advisable to bring along a record of your cash inflow and outflow, preferably monthly. This will ensure you spot any errors and cash shortages immediately. Therefore neither you nor your business will be damaged by them.

Cut Your Costs

Do a cash flow analysis with your cash inflows to see if there are any recurring transactions you think you can reduce. They can include costs like rent, utilities, payroll, subscriptions, and regular services. If you think you should lower your expenses, see if you can cut particular costs or negotiate payments.

Get Your Customers to Pay Faster

When you don’t want to annoy your customers or customers, a good option is to provide them with special discounts and sales to motivate speedy payment. For example, if you offer a 30-day credit term, you can reward your customers with a 5% discount if the bill is paid within ten days of receipt. If not, the total amount will be due when the 30-day credit term expires.

Get Cash For Your Assets

It’s especially crucial if you’re trying to earn money quickly. For example, you might consider that your business has outdated equipment sitting in storage, never to be used again. Tell your team to consider selling it or renting it, so you have a little extra cash on hand.

Obtain a Line of Credit or a Loan

Use your cash flow statement to make a financial plan, get a loan, or obtain credit. Make sure that whatever money you are getting is worth the cost of the loan or credit that you are getting.

Rent Equipment Rather Than Buy It

Never tie up cash in huge budgets, especially with cars or vehicles, computers or other devices necessary for business. At times, leasing such merchandise can be a better choice than acquiring it. If you rent it, you can switch it out without delay.

Keep Up With Your Invoicing

Compose your invoice so that it becomes straightforward to complete. You do not want something which will make billing your customers difficult or lead to incorrect entries. Another tip is to send the invoices electronically, so they don’t get lost in the mail and reach your recipient very quickly.

Finance Large Orders or Long-Term Contracts

Offering a deposit or partial payment indicates that you have some money to use for buying the products you require or to pay the team hired to do your job. Ask for as much as 25% upfront for materials before you begin your job.

Try to Delay Payments to Vendors

Attempt to deal with your suppliers about alternate payment due dates or utilize your vendors’ resources to make payments promptly. Avoid late fees and interact in a dignified and respectful manner that recognizes your relationships with your vendors.

Have Business Credit Cards to Support Your Cash Flow

Before opening a business credit card account, confirm that the benefits are valuable for business-related expenses, such as travel and hotels.

Business credit cards may provide a cushion to your cash flow if your company has low cash on hand; in addition, reports provided by a bank will allow you to track your expenses made for these cards.

In hindsight, keeping track of your business’ cash flow through productive cash flow management will prevent you from incurring unintentional monetary losses.


Small businesses should take full advantage of today’s cash flow management tools to simplify cash flow management. Automated tracking of your cash flow management and recording can help you save time, money, and energy, allowing for improved, positive cash flow.

To keep track of income and expenses, incorporate Moolamore accounting software into your daily routine and keep your financial data in one place for fast and easy processing. In addition, this software is compatible with numerous financial apps, so you can easily monitor your accounts by linking your various programs. Moolamore will be your enterprise’s new best friend, as it is an excellent budgeting tool.

Moolamore provides the best accounting software and services for your business. Be part of our legacy user group to enjoy your free lifetime access. Contact us.