Monitoring Small Business Cash Flow

Tracking past liquidity to better manage future liquidity

What you'll learn

Understand and measure the cash conversion cycle

Calculate key cash flow and financial metrics

Establish a cash flow monitoring process

Recall the benefits and steps to building a cash flow projection

Requirements

None

Description

One of the greatest sources of stress for small business owners is managing cash flow, also known as liquidity management. 69% of business owners have been kept up at night by concerns about cash flow. More than half of U.S. businesses have lost $10,000 or more by foregoing a project or sales specifically due to issues created by insufficient cash flow I'll explain the three tanks of cash for a small business, which is how cash flows into and out of a companyNext, you'll see how historical cash flow statements and metrics provide crucial information about the health of your company's cash flow. You'll first learn about the cash conversion cycle, which is how businesses create operational cash. Many businesses poorly manage this cycle. Cash balances can greatly improve when this cycle is well managed. I'll give you a tool to calculate your cycle. Even better, estimate how much your cash and profits might go up if you reduce your cycle time.Past cash flow analysis is used to improve future cash flow. I explain the benefits of a cash flow projection and how to create one. You also get these resources:A guide to cash flow metrics that gives examples of how to calculate key indicators of your company's cash flowThe cash conversion cycle calculator to estimate how long it takes to create cash from operationsA short guide on common ways for projecting numbersLinks to a cash flow projection template and income statement template.

Overview

Section 1: Some Business Cash Flow Basics

Lecture 1 Welcome and Overview

Lecture 2 Text Version of the Course

Lecture 3 Some Cash Flow Basics

Lecture 4 The Cash Conversion Cycle

Lecture 5 The Three Tanks of Cash

Section 2: Analyzing Past Cash Flow

Lecture 6 Historical Cash Flow Statements

Lecture 7 Cash Flow Metrics

Lecture 8 Metrics - Working Capital

Lecture 9 Cash Conversion Cycle Calculator

Lecture 10 Cash Conversion Cycle Calculator Example

Lecture 11 Metrics: EBITDA and Free Cash Flow

Lecture 12 Tips on Monitoring Cash

Section 3: Cash Flow Projections

Lecture 13 Benefits of Cash Flow Projections

Lecture 14 Ways to Project Numbers

Lecture 15 Create a Cash Flow Projection

Lecture 16 Projection Templates

Lecture 17 Bonus Lecture

Small business owners and staff who want to better understand and project their company's cash flow,Business advisors who want to help their clients better understand and track company cash flow