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It's Not as Hard as it Sounds Home Business Articles | April 10 Anthony Davis Lakers Jersey , 2002
Are you on the road to success with your ... Are ... One of the best tools to find out where ... is a cash flow; have you done one yet? If not, ... Keep reading; it's not t


Are you on the road to success with your business? Are you
sure??? One of the best tools to find out where you're
going is a cash flow; have you done one yet? If not, you
should. Keep reading; it's not that complicated!

A cash flow may sound intimidating but it doesn't have to
be. It is a way to see out how much money you'll be
spending and how much money you'll be receiving, and when.
You'll see when your expenses will exceed your income and
vice versa; it is a plan!

A simple cash flow is just a chart with rows and columns.
Label the columns "January", "February", etc. Down the side
show each item of income and expense. Then place the amount
of that income or expense in the column for the month that
the money will actually be received or spent. The idea is
to see how much cash is flowing in and out for each month.
(Remember to show expenses as negative numbers and income as
positive numbers.)

For example Avery Bradley Big Tall Jersey , you plan to set up your office in January, get a
mailing list, order inventory, design brochures in February, and
do a mailing in March. Make separate lines for each expense:
computer, furniture Kyle Kuzma Big Tall Jersey , fax, etc. If you finance anything, show the
payment(s) for each month they are paid. Now marketing expenses:
printing, envelopes, postage, etc. You may order inventory in
January Magic Johnson Big Tall Jersey , charge it in February, and pay it in March; put the
payment in the March column. Get the idea? If the mailing is
going out in March, you may expect some sales in April. Estimate
them and put the income into the April column. Total each column
to see what the net cash flow is for that month.

For example, January, February, and March will have expenses and
no income (negative cash flow). April will have expenses and
income; if income is more than expenses Kobe Bryant Big Tall Jersey , congratulations! You
have positive cash flow!

Some tips.

1) Use a spreadsheet computer program if possible; easy
to modify and no math errors!

2) Keep it simple; round to the nearest dollar and use a
minimum. I show anything that costs $20 or more.

3) Be conservative; over-estimate expenses and
under-estimate income.

4) This is a living document and should be updated every
day as your estimates become real numbers.

How does this help you?

1) It forces you to thoroughly research costs and
schedules.

2) It's a plan! You may see, for example, that you will
have to spend $2,000 in January, February, and March
before you start getting sales in April. Can you bear
it? If not LeBron James Big Tall Jersey , now is the time to find out. Maybe it will
work with a change in schedule.

By keeping an accurate cash flow you can see what's coming and
prepare for it accordingly.

If you have a spreadsheet program on your computer, I invite
you to download a free sample cash flow from my web site.
RIGHT click on the following link, then click either "Save
Target As..." or "Save Link As..."
http:www.TheStayAtHomeCEODownloadsbbb-cashflow-example.xls
If you have trouble downloading, just drop me a note and
I'll email it to you! (Mailto: CashFlow@DaveBalch) (It
is in Microsoft Excel format, but most major spreadsheet
programs should be able to convert it.) That will help you
get started... good luck! Article Tags: Cash Flow, January February

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by raj2patkar · September 17, 2018


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