Most working businesses have a constant stream of income and expenditures stemming from a variety of different operating activities. So, working out how much cash your business has available to spend can be confusing. But, that’s no excuse for poor financial planning.
To make sure you’re investing correctly in your business, have enough left over to satisfy the ATO, and are generating enough profit to satisfy your investors, you need to take control of your business’s spending and work out how much working capital you have at your disposal. You need to calculate your free cash flow.
Learn how you can calculate free cash flow and why it’s an essential business metric below.