Cash flow management tools to add to your small business

Cash flow management tools

Handy tools for managing your small business’s cash flow for the new financial year and beyond.

At a glance

  • Effective cash flow management is critical to keep your finances in order.
  • Prospa’s profit and loss projection tool and cash flow forecast calculator provide a guide for tracking and predicting cash flow.
  • Other strategies for managing cash flow include smarter invoicing and considering a business loan.

Forecasting and managing cash flow might seem intimidating, but it’s well worth the effort –   to be able to see at a glance whether your business is in a position to take advantage of opportunities or is heading for a difficult period that will require careful management.

Currently, some small businesses are likely experiencing an increase in the cost of goods and services – 39 per cent expected to see an uptick in the three months from March 2022 – and may be finding it difficult to meet financial commitments.

The good news is, there are plenty of tools to keep the financial health of your company on track. Here are some handy tools to add to your small business to help make the most of the new financial year.

Cash flow forecast calculator

Forecasting cash flow should be a priority for any business owner, whether in retail, hospitality, retail, construction, professional services or beyond. The predictions of revenue versus expenditure can help you figure out whether your business can invest in a new product or service, or needs to set aside a portion of revenue for an upcoming quiet period or large expense.

Prospa’s cash flow forecast calculator can help you spot trends and tackle cash flow issues before they become a crisis. With quick and easy calculations for immediate results, and multiple payment types accessible from drop-down menus, it can help you gain:

  • Custom alerts when balances fall below a set threshold.
  • Detailed monthly insights into incomings and outgoings.
  • A ‘living’ plan that adapts to growth in your business model.

Download our cash flow forecast tool here.

Profit and loss projection tool

How likely is your business to post a profit in the first few months of the new financial year? How great an impact will inflated operating and recruitment costs have on cash flow? To gauge how viable your current business model is, you need to have an idea of profit and loss.

This is where Prospa’s profit and loss projection tool comes in. With it at your fingertips, you can:

  • Track your business’s activity and health with a few quick expense calculations for the month.
  • Chart a projection for the rest of the year based on sales targets and pricing.
  • Improve your business model based on the projections.

Download the profit and loss tool here.

Your existing accounting software

It’s likely the accounting software your business currently uses has the capacity to help with cash flow management.

Take a look at whether there are any integrations or add-ons that could take your strategy to the next level. There might also be training materials for you to take advantage of, and there are always financial experts – such as professional accountants – to help set you up for success.

Advanced accounting tools might require a little upskilling, but the time and effort could help boost your business’s cash flow – and may attract tax deductions as technology training.

Four steps towards effective cash flow management

Cash flow management doesn’t stop with tech tools, however. Here are just five tips for helping your business stay cash flow positive ahead of the new financial year:

  • Get smart with your invoicing. Have a disciplined approach to keeping the books up to date, prompt invoicing and clear payment terms so payments are made in good time.
  • Review business budgets and reduce overheads where possible. Spend wisely – review any technology and software subscriptions, stay on top of stock management, and consider the potential return of any expenditure.
  • Use an accountant. If keeping track of revenue and expenses is proving tricky, consider hiring a professional to assist you in understanding the cash flow impacts that your may face business as the new financial year begins.
  • Save. It might seem like saying the obvious, but if your business has a cash reserve to fall back on during challenging times – such as the past few years – you won’t regret it.

Contact Prospa to find out how a small business loan can help you manage your cash flow. Get 8 weeks with no repayments with our EOFY offer.

The information in this post is provided for general information only and does not take into account your personal situation. Nothing contained in this post constitutes advice or an endorsement or recommendation of any kind by Prospa. Any links to third party websites are strictly for informational purposes only. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.