The Daily Cash Report
KEEPING YOUR FINGER ON THE PULSE: THE POWER OF DAILY CASH REPORTS
Cash flow is the lifeblood of any business, especially for small businesses navigating the initial phases of growth. Knowing exactly where your cash stands at any given moment is crucial for financial decision-making. This is where a daily cash report comes in, offering a simple yet powerful tool for small business owners.
So, what exactly is a daily cash report?
Imagine a quick and concise email hitting your inbox each day, highlighting your business's cash on hand at the start of the day, the total inflows (cash that came in), and outflows (cash that went out) throughout the day.
It’s so simple that you’re probably wondering why bother with it…
Here’s why you need a daily cash report:
Visibility: A daily report gives you real-time insight into your cash flow. You’ll get a clear picture of how much cash is readily available which leads to better financial decisions on upcoming expenses, purchases, investments, staffing, etc.
Better Cash Flow Management: By tracking daily inflows and outflows, you’ll notice a lot more. Things like recurring expenses, upcoming cash shortfalls, and areas for cost cutting.
Early Warning System: Your daily report acts as an early warning system, signaling potential cash flow problems before they escalate. For example, a sudden drop in sales or a surge in unexpected costs will surface quicker, allowing you to take action fast. Remember: DO NOT RUN OUT OF CASH!
Better Forecasting: With all the reps you’re getting from these cash data points, you’ll be able to tweak your 13-week cash forecast to perfection and likely improve your long-range forecasts too.
Peace of Mind: I tend to sleep better knowing I have money in the bank with payroll or debt payments looming; how about you?
Here’s what it could look like as it hits your inbox each day:
Sample daily cash email
A daily cash report is incredibly simple. Most accounting software or even a spreadsheet could be used to automate the process. Otherwise, ask your bookkeeper or accountant to send you a quick end-of-day or first-thing-in-the-morning note with your balances.
By dedicating just a few minutes each day to looking over your report, you’ll get incredible peace of mind and insight into your business. Look it over each morning or afternoon, and you’ll know right away whether any action is needed or if you’re simply “checking the box” to stay on the lookout.
We help businesses grapple with cash flow problems; so send us a message if you want help with this!
