While cash flow is a regular topic here, it’s been a while since we hit the topic from a finance and accounting perspective.  While many small business owners find accounting to be tedious it is extremely important if you ever want to have success with your business.

Cash Flow DiagramThe reason cash flow is so important for any small business is that in directly impacts the overall health of the business!!!  Without good cash flow you’ll be out of business in no time.

You’ve heard me say over and over again that cash flow is not a function of accounting.  Cash flow is a  direct function of your to operations.  It’s what improves when tuning your revenue engine!  That being said, accounting is importnat because it’s the way that you monitor cash flow.

While there are lots of tools out there that will help you manage the cash flow process.  It’s still requires a process.  The tool won’t help if you don’t have a standard process in place to manage cash flow.

How to Generate a Cash Flow Forecast

Here is a great article posted a few weeks back from one of our contributing writers Frank Gnisci: How to Generate a Cash Flow Forecast.  Frank has a knack for simplifying things so that anyone can understand it.  And any of you that have used any of small business solution or read our other posts know that’s what DE, Inc. is all about.  Simplifying business growth!!!

Take a look at Frank’s article and tell us what you think.  Remember, if you want to have a success business then managing your  cash flow is a critical part of the formula!