Tracking in Excel
Excel spreadsheets and Google documents and sheets are the go-to manual method of tracking business cash flow. When using spreadsheets, you will need to enter all information manually – past, present, and future- for monitoring purposes.
To get started with manual tracking, you will need to have your business’s income statement and balance sheet from last year. Use this information to populate a cash flow statement. This cash flow statement is the record of the money travelling through your business and the changes in your cash on hand. You can use this cash flow statement and template to help create one for your business. Once created, the analysis of cash flow statements can help your business determine how to best use cash on hand for optimal output.
However, manually recording cash flow typically means that by the time you can view and use the information you have input, it is already out of date and irrelevant to your current cash flow state. Many larger companies turn to software as it offers automatic tracking and up-to-date information without human error when managing cash flow.
With numerous apps for tracking cash flow found online, there are so many to choose from; how do you know which one will work best for your business?