Updated: Jan 16
Cash Flow Management is one of the most critical pieces to a successful business, especially for a restaurant or small business. Estimating your cash in and your cash out needs ensures you will have the money necessary to pay bills when needed. Large expenses like rent, property taxes, payroll taxes, unplanned repairs or capital costs all require careful cash planning.
Some keys to successful cash management include:
• Having good controls on cash handling procedures and deposits.
• Ensuring deposits get to the bank every day (cash and credit).
• Budgeting and monitoring purchases each week based on sales and cash in.
• Keeping inventory as low as possible for your business (food, beverages, supplies).
• Tight labor controls every day.
• Keeping a cash flow spreadsheet to track cash in and out.
The final essential aspect for proper cash management is having a savings account for those periods of time when sales naturally dip or large required expenses occur.
Incorporating these tactics into your daily routine not only helps ensure you have the cash available to pay for your necessary purchases but you will also set yourself up for better profitability at the end of the month.
Contact me and I can help you put systems in place to manage your cash flow and have a successful business.