There is one universal truth we can all agree on in business: money matters.

You must spend money to make money and to do that you need a healthy cash flow. However, cash flow is the number one reason businesses fail. It directly contributes to the long-term success of a business and impacts nearly every decision. Eighty-two percent of those that fail do so because of insufficient funds and cash flow problems.

Formal Cash Management Procedures

Getting the right balance of cash isn’t always easy. Consistent procedures and a realistic picture of your working capital will prevent funding shortfalls and keep your business afloat during financial downturns. 

Formal policies and procedures allow for better control over your cash so you can quickly identify risk and uncover potential problems within your accounting structure.

However, manual workflows are still common among businesses, and this could be hindering accuracy and productivity as you work on maintaining a healthy cash flow.

Best Practices for Financial Clarity and Cash Flow

With software built for cash management, you’ll get the complete picture of your financial position without all of the tedious backend work.

Here are a few best practices that you need as a controller and financial manager for a better cash management workflow:

• Get to know the numbers. Review your cash flow statements early and often — make this a regular basis.
• Automate your accounts payable processes. Let your software automatically handle every step of the payment process, from capturing invoice data to payment controls, so you don’t fall behind or get caught up on tedious approvals.
• Plan for future expenses. It’s not enough to know where your current expenses have been allocated, you must continually think ahead.
• Reconcile bank records in seconds. With Sage Intacct’s accounting software, your team will no longer be limited by hours spent reviewing transactions and making manual adjustments in spreadsheets and bank portals.
• Welcome slow and steady growth. You’ve heard the saying, slow and steady wins the race. Well, your business is running a marathon, and if you aren’t prepared to handle rapid growth, it’s a recipe for disaster and cash flow burnout.

The 13-Week Forecasting Model

This model helps businesses create a reliable budget and get an accurate picture of their current financial state. Thirteen-week forecasting allows businesses to plan ahead, giving insight into the most effective use of funds in the following quarter.

With a 13-week cash flow forecast, you’ll be able to:

• Plan quarterly budgets
• Analyze weekly details
• Identify cash shortages
• Minimize risk

Sage Intacct provides the tools, real-time data, and automation needed to make cash flow planning easier than traditional forecasting methods.

More Than Monitoring: A Trusted Solution

Problems with cash flow won’t go away on their own. With proper planning, policies, and solutions in place, you’ll safeguard your long-term success and be positioned for positive growth. Leverage Sage Intacct to automate manual tasks, create cash flow statements, strengthen internal controls, and increase cash visibility. 

Contact us today to learn more about using Sage Intacct to improve your cash flow and simplify your budget forecasting.