Fail to do this one thing, and your business could fail too
Nike have a phrase for it: Just do it. It’s one everyone running a small business should take as their mantra when it comes to monitoring cash flow – an activity whose importance can’t be overestimated.
Without the knowledge of what’s happening inside your business, which cash-flow monitoring will point out, it’s impossible to tell how well, or how badly, a business is performing.
Things might look good, but there’s always a danger that perception is different from reality. Only by doing the sums and recording the numbers, about everything, all of the time, can a business ever be certain of the truth of its operations.
Careful use of small business expense management apps will show things as diverse as which client is profitable, and which isn’t; which supplier is cost-effective, and which isn’t; how much money is tied up in stock, how many invoices remain unpaid – and their value.
Which tool a business uses is a matter of personal preference; indeed there are numerous expense management apps for small business out there, suitable for iOS or Android, and easily found and compared on the internet. All essentially do the same thing, but all have one fatal flaw, described by one IT supplier as ‘the keyboard/chair interface’. That’s a polite way of saying ‘you’.
It means that no expense management app will record spending on its own. That’s your job, and always will be.
Are you doing it? If you don’t, financial trouble could lead you into a financial abyss – so, as Nike would say, just do it.