{"id":251322,"date":"2023-02-28T00:33:36","date_gmt":"2023-02-27T22:33:36","guid":{"rendered":"https:\/\/mypr.co.za\/?p=129095"},"modified":"2023-02-28T00:33:36","modified_gmt":"2023-02-27T22:33:36","slug":"everything-you-need-to-know-about-cash-flow-management","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/everything-you-need-to-know-about-cash-flow-management\/","title":{"rendered":"Everything You Need to Know About Cash Flow Management"},"content":{"rendered":"<aside class=\"scaip scaip-1 \">\n<aside id=\"republication_tracker_tool-2\" class=\"republication_tracker_tool clearfix\">\n<h5 class=\"adtitle\">Republish for Free<\/h5>\n<div class=\"license\">\n<p><button name=\"Republish This Story\" id=\"cc-btn\" class=\"republication-tracker-tool-button\">Republish This Story<\/button><\/p>\n<p><a class=\"license\" rel=\"noreferrer license noopener\" target=\"_blank\" href=\"http:\/\/creativecommons.org\/licenses\/by-nd\/4.0\/\"><img decoding=\"async\" alt=\"Creative Commons License\" class=\"lazyload\" src=\"http:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2023\/02\/everything-you-need-to-know-about-cash-flow-management.png\"><\/a><\/p>\n<p><img decoding=\"async\" alt=\"Creative Commons License\" src=\"http:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2023\/02\/everything-you-need-to-know-about-cash-flow-management.png\"><\/div>\n<div class=\"message\">\n<p>Republish our articles for free, online or in print, under a Creative Commons license.<\/p>\n<\/div>\n<\/aside>\n<\/aside>\n<p><strong>Why is cash flow management important?<\/strong><\/p>\n<p>We probably don\u2019t need to explain that money makes the entrepreneurial&nbsp; world go \u2018round. Without available cash to cover your running costs and overheads, your business is dead in the water. Money flowing in and out is&nbsp; called your cash flow, and it is vitally important that you track and analyse this, in order to make smart financial decisions that make your money work for you.<\/p>\n<p><strong>A cash flow analysis<\/strong> allows you to analyse the liquidity position of the company and gives a snapshot of the amount of cash coming into the business (inflows) and amount flowing out (outflows). Smaller businesses&nbsp; are often very dependent on their monthly inflow in order to cover running costs and overhead,&nbsp; meaning that positive cash flow and proper <strong>cash flow management<\/strong> is vital. Let\u2019s dive in.<\/p>\n<p><strong>What are the 3 types of cash flows?&nbsp;<\/strong><\/p>\n<p>There are three basic sources of revenue that can flow into your business.<\/p>\n<p><strong>Operating cash flow:<\/strong> Simply put, this is money that you receive from selling your goods or services, versus&nbsp; the money that you spend keeping your doors open. A company whose income exceeds its operating expenses is cash flow positive.<\/p>\n<p><strong>Investing cash flow: <\/strong>Cash flow from investing activities refers to funds received from any&nbsp; long-term investments, e.g. buying shares in another company or startup.&nbsp; When those shares are later sold for a profit, this money contributes to your business inflow.<\/p>\n<p><strong>Financing cash flow:<\/strong> Some companies sell ownership shares to investors to raise money for operating expenses.&nbsp; For some startups, financing cash flow will play a more significant role than operating cash flow in the company\u2019s overall cash flow management.<\/p>\n<p><strong>How Can You Increase Cash Flow?<\/strong><\/p>\n<p>There are a number of&nbsp; short-term and effective strategies that you can implement in order to immediately improve your cash flow.&nbsp; Consider the following:<\/p>\n<p><strong>Negotiate better terms with your supplies<\/strong>, and see if it\u2019s possible to get a bulk discount.<\/p>\n<p><strong>Re-examine your costing and manufacturing process.<\/strong> Make sure that your costing is realistic and that your production process is lean.<\/p>\n<p><b>Incentivise<\/b><strong>&nbsp;early payment<\/strong> from clients, and make sure to chase those late payments. Your money should be in the bank working for you, not in somebody else\u2019s account.<\/p>\n<p><strong>Cut down on \u2018nice-to-haves\u2019 in the office. <\/strong>Do you really need catered lunches?<\/p>\n<p><strong>Rethink your big office space<\/strong>, especially now that remote and hybrid work models are becoming the norm.<\/p>\n<p><strong>Know and understand your yearly cash-flow cycles<\/strong>, and prepare for quieter times. When a shortfall is on the way, you can identify it well in advance and take the necessary steps now to avoid it. Experts like OCFO utilise top tools and approaches to help you forecast money in and money out. In times of excess, cash can be invested smartly.<\/p>\n<p><strong>Call in the financial experts <\/strong>to assist with <strong>cash flow projections <\/strong>&nbsp;and effective cash management<\/p>\n<p>Now that you\u2019ve increased the cash flow and kept yourself liquid, it\u2019s just as important to manage that liquidity to your advantage. If you do not have the experience or the in-house expertise on tap, consider getting the experts on call, like OCFO, to advise you on your<strong> cash flow management<\/strong>.<\/p>\n<p><strong>Getting in the OCFO Experts to help you manage your cash flow smartly<\/strong><\/p>\n<p>Growth sucks cash \u2013 that\u2019s the number one law of entrepreneurial gravity. As you grow, there will be a bigger and bigger ask of your available resources, while managing everything becomes ever more complex. As an entrepreneur, your job is to focus on growing the company, while a dedicated Outsourced&nbsp; CFO gives you the clarity to make the right calls as you power towards the next milestones. For instance, periods of high profitability and liquidity events (fundraises, exits) can lead to excess money in the bank. Make smart cash allocations&nbsp; and <strong>manage your cash flow with ease<\/strong>, led by the insight and experience of a CFO who has handled large sums before.<\/p>\n<p>All business owners will want to avoid cash flow problems. However, due to their size and ability to access financial resources, SMEs are often disproportionately affected by negative cash flow. Careful <strong>management of cash flows<\/strong> and attention to liquidity will see your business through any crisis. Contact OCFO, we have the experts and the tools to <a href=\"https:\/\/www.ocfo.com\/cfo-services\/cash-flow-budgeting-management\/\" target=\"_blank\" rel=\"noopener\">help you analyse your cash flow situation<\/a>, and plan for future liquidity. Or visit <a href=\"https:\/\/www.ocfo.com\/\" target=\"_blank\" rel=\"noopener\">www.ocfo.com<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt width=\"900\" height=\"471\" class=\"size-large aligncenter wp-image-129096 lazyload\" src=\"http:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2023\/02\/everything-you-need-to-know-about-cash-flow-management.jpg\"><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large aligncenter wp-image-129096\" src=\"http:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2023\/02\/everything-you-need-to-know-about-cash-flow-management.jpg\" alt width=\"900\" height=\"471\"><\/p>\n<p><strong>Video:<\/strong> Everything You Need to Know About Cash Flow Management<\/p>\n<p><strong><a href=\"https:\/\/mypr.co.za\/Everything%20You%20Need%20to%20Know%20About%20Cash%20Flow%20Management\/2\/\">Boilerplate and Editor\u2019s Notes<\/a><\/strong>.<br \/><strong>More Info on <a href=\"https:\/\/www.ocfo.com\/cfo-services\/cash-flow-budgeting-management\/\" target=\"_blank\" rel=\"nofollow noopener\">Everything You Need to Know About Cash Flow Management<\/a> here:<\/strong><br \/><strong>Twitter<\/strong>:<br \/><strong>Facebook<\/strong>:<\/p>\n<p><a href=\"http:\/\/mypr.co.za\/save-with-myprs-monthly-flat-fee\/\">CLICK HERE to submit your press release to MyPR.co.za<\/a>.<\/p>\n<p> <span class=\"post-views-icon dashicons dashicons-chart-bar\"><\/span> <span class=\"post-views-label\">Press Release Views since 1 July 2022:<\/span> <span class=\"post-views-count\">68<\/span> <\/p>\n<div class=\"entry-pagination pagination\">Pages: <span class=\"post-page-numbers current\"><span class=\"screen-reader-text\">Page <\/span>1<\/span> <a href=\"https:\/\/mypr.co.za\/everything-you-need-to-know-about-cash-flow-management\/2\/\" class=\"post-page-numbers\"><span class=\"screen-reader-text\">Page <\/span>2<\/a><\/div>\n<p><a href=\"https:\/\/mypr.co.za\">Source: MyPR.co.za<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Republish for Free Republish This Story Republish our articles for free, online or in print, under a Creative Commons license. Why is cash flow management important? We probably don\u2019t need to explain that money makes the entrepreneurial&nbsp; world go \u2018round. Without available cash to cover your running costs and overheads, your business is dead in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":251323,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4584,3331,18,6468,3332,9021,3330,3336,1],"tags":[3257],"class_list":{"0":"post-251322","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-africa-news-2","8":"category-cape-town","9":"category-durban","10":"category-east-london","11":"category-johannesburg-south-africa","12":"category-mypr","13":"category-port-elizabeth","14":"category-pretoria-south-africa","15":"category-south-africa","16":"tag-mypr","17":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2023\/02\/everything-you-need-to-know-about-cash-flow-management.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/251322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=251322"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/251322\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media\/251323"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=251322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=251322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=251322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}