Financial health is the foundation for a company to remain resilient in the marketplace. After all, only through good control of their finances can the manager make assertive projections, calculate the working capital of the business, and make investments for the growth of the organization. To do this, he needs the proper tools, of course. And the main one is cash flow.

Basically, cash flows are required for the manager to track the operating results of the business. That is: record the inflows and outflows of funds that are directly related to the operating activities of the company. Maintaining this balance is crucial, because if the balance of the equation is positive, it means that the company is on the right track.

The question then is: what to do to maintain the health of cash flows? This is what you will see in this post. Keep up!

Define the rules for cash flow

It is critical that you clearly define which rules you will adopt for your control. After all, what will be the period to be evaluated? Week, month or year? So you can compare results more accurately and have standardized information.

In addition, the very visual composition of cash flows must be considered. Red outputs, for example, and blue inputs, assist in control and monitoring, as they facilitate the identification of information.

Register the accounts

Now is the time for registration. First, you must separate fixed expenses from variables to understand a little more how they work. The former are related to the company’s monthly bills, such as light, salaries and others. Variable expenses, on the other hand, are closely linked to production, such as raw materials.

In addition, an internal policy based on accountability must be created. Employees need to be trained to value each record, as this can directly impact the manager’s perception.

Separate accounts into categories

Both receivables (receivables) and payables (receivables) should be separated into categories or cost centers such as marketing, computing and others. This increases the degree of cash flow control and allows for a more accurate assessment of each movement.

Care must be taken in this separation. Many categories can make cash flows confusing. If you do the opposite and resolve for simplicity, they can become shallow and uninformative.

Make financial projections

The best part about effectively controlling cash flow is that over time, the manager increases the predictability of business income and expenses. This is because, with the information collected monthly, it is possible to make financial projections for the company.

These projections help not only the financial field, but also other related activities, such as inventory control and setting sales targets.

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