Cash Flow Planning

It is a well known fact that the lack of cash flow is the downfall of any business. Without enough cash flow you will be unable to make future plans for you business, let alone pay the bills to stay in business.
Cash flow planning is a way to look into the future so to speak and gauge the money from sales, loan and services and compare them to your cash needs of the future. Your net cash flow is the difference between the two. By doing this, it is the only way you can spot problem before they become a major deal.
Tracking your spending can be done on a computer or on paper, whatever way keeps you in touch with where your money is going. Which ever you choose, it needs to be done on a regular basis and your spending that you project should cover twelve months. In this way you will also cover annual expenses will only come around once a year. If you have been in business for over a year, you can use last years figures to project next years.