As a business owner, you’re always concerned with how much you’re spending and what you’re bringing into your business. This movement of money is known as cash flow, and it’s what helps you keep your organization running and growing. However, most don’t have a thorough understanding of what’s involved, especially when considering their company’s accounting needs.  

What Is Cash Flow, Really?

Your business’s cash flow provides you with a clear picture of your company’s performance and offers insight into the growth of your brand. Each time a client or customer purchases your products or uses your services and pays you for the privilege, they’re generating positive cash flow. This means they’re depositing money into your company, increasing your reserves. When you pay bills, purchase products, or pay employees, you’re creating negative cash flow as the funds are leaving your account. Under ideal conditions, you’ll have more positive than negative flow, yielding a profit margin.

How Do I Keep Track of It?

When you’re first starting out, it’s important to establish good bookkeeping habits. Begin by keeping a ledger or spreadsheet with all of your business expenses. This will help you see how much you’re spending each week and month on the necessities, surprise costs, and investments in your company’s growth. On a separate page or column, keep track of any money coming into your business. This will track your profits. Save both receipts and invoices so you can double check your accounts as needed.

Can I Do It on My Own?

As your business grows, the complexity of your cash flow will increase. While this is a good thing, it can quickly become overwhelming for small business owners juggling their bookkeeping responsibilities with their other duties. That’s when hiring a professional helps. They’ll manage your accounting, tax preparation, and assist you in developing a solid growth strategy to help your company see long-term success.

If you’re looking for an experienced accounting team to help you keep track of your company’s cash flow, Hal Surrat, CPA, in Archdale, NC, offers reliable and accurate services. With years of experience helping small business owners, their dedicated accountants will get to know your unique situation and create a custom plan for your organization. Visit their website for more information about what they offer, and call (336) 861-4024 to speak with a representative today.