Cash flow analysis may sound like something that is complicated but in fact any time you balance a check book or write out payroll checks you are using cash flow analysis. Tracking the income and outflow of money through your business is known as cash management and analysis is simply putting that information into a form that is easy to understand.
You have money coming in from sales or services, you have money going out for rent, taxes, payroll, merchandise and utilities…there must be a balance and hopefully a difference that allows your company to save or invest the profit. Knowing what your company is earning and spending is the only way you can determine the best way to spend, save or invest the profit margin in a way that will help your company succeed and expand.
A professional financial planner can help you set both short and long term goals based on your cash flow analysis and other factors of your business. Would you like to be in a larger location within 5 years? If so start planning now.