I was reminded today in a blog post by Jeff Walker, success happens in baby steps. I needed
that reminder today, to remind myself I am on a journey to building my business
and it doesn't happen over night . . although I would LOVE the success to
happen yesterday. A heartfelt YES, and you?
So I thought, why not create a post that supports leaders, entrepreneurs,
business owners and CEO's a baby step action plan for managing cash.
Step #1 - Manage cash daily.
How you ask?
With the daily, 12 month cash register. (You can purchase it
to your right for $150, equal to $12.50 a month, which is equivalent to approximately
3-4 latte's)
Why manage cash daily? This is the path that provides
direction for your financial goals for your business or life. This is so you know where
you are financially at all times, and so you see where you are heading. Mapping out cash
coming in and going out daily, allows you to see and plan what is needed. You
know when monthly recurring bills and loan payments happen, so map it out and
plan how much cash you need daily..
A question I am constantly asked - Why do I need to manage
cash flow daily when I use QuickBooks.?
Great question - the answer - CASH is KING. Cash is worked
daily, you need to know how much cash you have on hand at all times. YES, that
means creating a new muscle, a new habit if you want to figure out how to work
your cash flow differently. Cash happens
right now, in this very moment when you receive a payment or are purchasing
goods or services. Working cash daily forces you to look at and think of what
is coming up next. If it is next week, the end of the month, next month or next
quarter, etc.
When I was working with privately held corporations, as
the CFO I worked and planned cash daily, always looking at each day, each week,
each month and each year. My team worked updated the financial information in the
accounting software. AR, AP, monthly transactions, etc were worked on thru
out the month. Cash and financials are two
different animals. Cash is cash managed daily and financials share the whole picture, the
financial story for the business every single month.
Even now, with our gym business, we manage cash daily with
the daily cash register. It is similar to a checkbook yet in Excel, that holds 12 months
of info in one workbook. Each month has it's own tab, and each worksheet is
linked to the next. Every day we look at cash and manage it daily. Each day's
deposits are mapped out and updated daily at the end of the day or the next
morning. Recurring payments such as payroll, monthly payroll taxes, quarterly payroll taxes, trainers commissions, monthly loan
payments, purchasing supplies and advertising are mapped out in advance and updated as needed. By doing this we are able to
make a easy financial decisions on the spot. One example, how much to transfer to savings each month. We use the cas placed in savings for the bi-annual property tax
payments or plan for additional equipment purchases. I also balance the monthly bank statement to the daily
cash register which is a check and balance system for balancing cash to QuickBooks
at the end of the month.
Remember, CASH is KING, so you need to know where you are at
all times.
The key to success for your cash is to create simple, easy, baby step habits that will open the door to new
possibilities for you and your business.
Get in to action, purchase the daily cash register and get
cracking on managing your cash daily. If you have any questions please leave
below or e-mail me at d.rosenfelt@cfomadeeasy.com
Warmly -
Debbie
Rosenfelt
Chief Heart
Officer
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