Watch your Cash Always

Remember Cash is Critical
The saying that “cash is king” is still applicable today. Having cash on hand to meet the expenses of the business is a critical factor which determines the success or otherwise, and even the survival of a business. Having cash available is most important and any business must ensure this is provided for. The fact is that once you run out of cash money you will not longer be able to continue your business.

Your employees want to be paid in cash only. Your suppliers don't want to be paid with your products - they want cash. Utilities such as power and telephone will only accept cash in payment.

The saying - “love makes the world go round, but it's the cash that keeps a business going” is very true. Other firms will not deal with you if they are not being paid on time, or if they are not being paid at all. If you do not have enough cash on hand it will only be a matter of time before problems arise within the business and suppliers will stop supplying you with products, or your power will be cut off, or your telephones disconnected, or your valued staff leave to find other work.

Cash is the lifeblood of your business. Once that blood ceases to flow, the health of your business will suffer and eventually your business will die.

You Must Track your Cash
Small business owners often fail to keep track of their cash flow because they don't fully understand the need for managing cash. Others do not enjoy the prospect of having to maintain more paperwork than necessary.

You need to put in a system that will track your cash coming in as well as the cash being paid out. This is not difficult because it is possible to buy simple software that provides a system to be put in place to control this area.

Cash needs to be tracked on a daily basis. This is because your cash situation may change daily, depending on costs that may arise unexpectedly. Maybe an unexpected opportunity presents itself and requires immediate cash.

Tracking your cash will give the business an early warning system of potential liquidity problems. This will allow you to have plans in place to correct what could easily become a dangerous situation.

It doesn't matter how prosperous your business. If you don't track your cash you won't know what you have available at any specific time to keep the business running.