Cash Flow

The Cash flow of your business is probably the most important factor that you need to be aware of at all times. I have listed the few things that you need to do when you are setting up your business, but keeping track of your cash flow should be a daily job. Keeping track of your bottom line, especially if this is not one of your strong points, might seem like a huge task, but if you don’t do this you might be out of business before you even get started. If you are not good with numbers then I strongly recommend that you get a bookkeeper or meet with your accountant on a regular basis.

• Get a business bank account – go to your bank and open a business banking account it is easy they will help you with this process. The one thing you need to make sure of is unless you are starting a sole-proprietor business then you will need the proper documents to set up you account.

• Merchant Credit card account– your bank can help you here as well, but there are also many merchant services companies as well. Find the company that will meet your needs best.

• Checks– you can get checks from your bank or I would recommend using one of the many companies that you can buy checks from. If you are using bookkeeping software make sure you buy the correct checks.

• Bookkeeping software – many business owners are scared to get bookkeeping software because they think that it is too hard to learn how to use. There are some software that is not that difficult to use and can help you tremendously when figuring out what your cash flow is. Do not start a business if you are not willing to learn how to use basic bookkeeping software. It is a must.

• Figure out your start-up costs – The money it takes to open your doors for business

Your bottom line is one of the numbers that you will need to constantly be looking at. You will need to know what your income is versus your expenses and at the end of the month your bottom line will be the money you have left over. You will need to know what your fixed costs are as well as your variable costs most commonly referred to as Costs of good sold COGS. If you are a restaurant then your variable costs would be all of the food you need to purchase in order to make the food on your menu. A few ideas of what Fixed Costs are:
• Rent
• Utilities
• Advertising
• Insurance
• Taxes
• Payroll
• Equipment Lease