You've had your small business for a few years, and even through the pandemic, you’ve managed to stay afloat. You have products (digital or physical) on shelves, customers making purchases, and your books show profits. Even if it appears that you have a profitable business from the outside, however, one of the most critical indicators of success for small businesses is that they maintain a healthy cash flow.
So, what does your monthly cash flow look like?
Most small business owners are heavily involved in their business finances- You probably spend a decent amount of your time tending to accounts payable statements, reviewing your accounts receivable reports, and monitoring how much cash is in your bank account. These financial tasks are essential to creating a positive net income, but checking your bank account balance doesn't give you the figures you need to manage cash flow properly.
Instead, you need to be monitoring the most crucial yet most widely...