How do you keep an eye on cash flow in your company?

Discussion in 'Cashflow forum' started by DavidBistiak, Feb 2, 2019.

  1. DavidBistiak

    DavidBistiak UKBF Newcomer Free Member

    2 0
    Hey Guys,

    I work as a Team Leader in a Software House (16 employees, AR $575,000), where we create mobile apps and software for clients. I am really interested in how you keep an eye on cash flow in your companies. Not from an accounting point of view, but rather a high level perspective from CEO, Team Leader and Finance Manager.

    As a Team Leader I am responsible for achieving positive cash flow and employee management in which team has to have enough long term tasks. I don’t issue the Invoices, but I need to know about the actual and planned company numbers (balance, income, expenses and profit). I track these numbers (every entry) in Google Sheets. But It’s really annoying.

    I don’t want to create Invoices. I don’t have time for that. I want to track company numbers the simplest way possible. I want to focus on my job, business and planning.

    • Do you have similar problem or need with Invoices?
    • How do you track your company numbers?
    • What is your company's core business and revenue?
    I really appreciate anyone who will join this discussion.
    Posted: Feb 2, 2019 By: DavidBistiak Member since: Jan 19, 2019
  2. fisicx

    fisicx It's Major Clanger! Staff Member

    32,319 9,564
    Why not? How do customers know how much to pay unless you issue an invoice or some other payment instruction?
    Posted: Feb 2, 2019 By: fisicx Member since: Sep 12, 2006
  3. Blaby Loyal

    Blaby Loyal UKBF Ace Free Member

    1,016 193
    Cash flow without invoices: now that's an interesting concept esp. for a client-based service business.
    Posted: Feb 2, 2019 By: Blaby Loyal Member since: Jun 12, 2018
  4. Scalloway

    Scalloway UKBF Legend Free Member

    16,025 3,385
    I get the impression the OP doesn't issue invoices because somebody else does.
    Posted: Feb 2, 2019 By: Scalloway Member since: Jun 6, 2010
  5. fisicx

    fisicx It's Major Clanger! Staff Member

    32,319 9,564
    If that is the case then surely it's a job of the FD to monitor cash flow
    Posted: Feb 2, 2019 By: fisicx Member since: Sep 12, 2006
  6. Newchodge

    Newchodge UKBF Big Shot Free Member

    14,137 3,730
    I rather expect that someone will be along very shortly with a solution to the OP's problem. Funny how that happens, innit? They may even send their solution from the same IP address as the OP. The wonders of t'internet never cease to amaze me.
    Posted: Feb 2, 2019 By: Newchodge Member since: Nov 8, 2012
  7. KM-Tiger

    KM-Tiger UKBF Legend Full Member - Verified Business

    9,966 2,653
    Bit of a learning curve, but these work really well:

    And if anything goes wrong, you just turn it on its side to reboot.
    Posted: Feb 2, 2019 By: KM-Tiger Member since: Aug 10, 2003
  8. Newchodge

    Newchodge UKBF Big Shot Free Member

    14,137 3,730
    But WHICH side? Is there an app that will tell me which side to turn it to?
    Posted: Feb 2, 2019 By: Newchodge Member since: Nov 8, 2012
  9. Curran Thorpe

    Curran Thorpe UKBF Newcomer Free Member

    1 0
    I am working for Life Long wealth management group and there is no such issue.
    Posted: Mar 28, 2019 By: Curran Thorpe Member since: Mar 28, 2019
  10. HFE Signs

    HFE Signs UKBF Ace Full Member

    1,111 151
    I presume you must have difficulty working out VAT and tax too then?
    Posted: Mar 28, 2019 By: HFE Signs Member since: Feb 17, 2011
  11. Victoria_V

    Victoria_V UKBF Regular Full Member

    153 19
    Hi There! One way you could keep an eye out on your cash flow without tracking or issuing invoices is by creating a sheet with a list of all your scheduled work for clients and an estimated date of when the business intends to complete the work. Perhaps split all your client work into milestones and make a note of how much you will get paid for each milestone.( You may be able to get this on your contract of work with clients).

    Let’s take a simple example. You have a 1 year contract with your client to complete a certain piece of work for your client. That piece of work is split into 4 milestones and each milestone is scheduled for completion at the end of every 3 months. The business will get paid every time a milestone is complete(assuming the work is completed on time). Your cash flow forecast will be based on the assumption that your business completes the milestone every quarter and receives payment for it 30 days after each quarter. So if you were charging £12,000 for the whole year’s contract, you will get paid £3,000 each quarter, but that £3,000 will be paid 30 days after the first quarter ends(assuming you give your client 30 days payment terms). You would do the same for all the work that you are doing and aggregate all of them.

    Subsequently do the same with your cash outflows, make a detailed schedule of all the costs that you will incur and add them to your schedule of when you think they will have to be paid. Don’t forget to also include any capital equipment that you are planning to buy as this will be cash going out of your business.
    Posted: Jun 26, 2019 By: Victoria_V Member since: May 29, 2019
  12. The Byre

    The Byre UKBF Ace Free Member

    9,773 3,948
    • We issue invoices always.
    • Mrs. M tells me what going on and if there is a problem, she takes me to one side and says "Can we talk?"
    • Equity-oriented and lumpy.
    Cash Floe - didn't she work the KFC-corner of 150 and Broadway?
    Posted: Jun 26, 2019 By: The Byre Member since: Aug 13, 2013
  13. TheoNe

    TheoNe UKBF Regular Full Member

    135 14
    We have been using a software solution - Sage - to do the tracking for us. This has really enabled us to stay on-top of everything financial including cash flow.
    Posted: Jul 11, 2019 By: TheoNe Member since: Jul 6, 2019