7 Quick Cash Flow Tips for Financial Managers

Excel Spreadsheets

Controlling your cash flow is not so simple ...

O cash flow is one of the most important demonstrations of the day to day work of any financial manager. In addition to providing essential information about the company's financial health, it also provides a series of analyzes that can assist in making a number of important decisions.

Business Spreadsheets

Now, if you think that simply controlling the inputs and outputs is enough to have good analysis and control the financial without problems. To reach this level there are a number of quick cash flow tips that can help financial managers make the most of this tool.

7 Quick Cash Flow Tips for Financial Managers

In general they are simple tips, but not every financial manager puts into practice in their day to day business. Let's look at each one now:

Tip 1. Use technology to your advantage

Although cash flow is essential, there are still many companies that do not have any type of financial control. If this is your case, rethink quickly because not knowing what is going on with your finances can lead you to make quite bad decisions in the near future.

One of the best ways to control your financial with relatively little work is by using ready-made spreadsheets or professional systems. Below is an example of our spreadsheet cash flow, which greatly facilitates the life of various managers.

how to make bank reconciliation using your cash flow - corrected launches

With it, the only job is to fill in the entries in and out of the worksheet. Other than that you only need to do analysis of the results obtained automatically.

Tip 2. Categorize your financial information

If you already have a tool that assists in financial control, you need to think about what information is important for your business to control. In that sense, categorizing information will get you closer to good analytics.

Particularly, I believe that there are 3 essential items for a good organization:

  • Chart of accounts - allows you to analyze which groups of revenues or expenses are most relevant
  • Forms of payment - shows you if any means of payment is more important
  • Cost centers - facilitates the monitoring of areas of the company that have revenues and expenses

Here's an example of a chart of accounts with revenue groups with services and product recipes:

management plan of accounts

If you also record group accounts, you can do more in-depth analysis when posting entries and exits.

Business Spreadsheets

Tip 3. Track your inputs and outputs periodically

If your business is a retail or has sales every day, follow up daily. Try to understand better or worse days (in terms of results) so that good practices are recurring and what is wrong is corrected quickly.

Below is an example of our daily summary report. spreadsheet cash flow:

how to track forms of payment in cash flow - Daily Launch Summary

If the recurrence of sales and expenses of your company are not daily, adopt a follow-up periodicity that makes sense for your business. It can be weekly, biweekly or even monthly, but more than that I do not recommend, as it would take you away from a good analysis.

Tip 4. Focus on analysis of major financial reports

There are 2 main reports that always need to be analyzed together:

  • Cash flow

Controlling customers and suppliers in your cash flow - overall cash flow statement

  • Statement of income for the year

how to interpret the DRE - statement of results of the exercise - synthetic

Both will show you a way to analyze your finances. The cash flow shows you its result by the cash regime, that is, presenting only cash receipts and withdrawals. The DRE will show you a statement based on sales and purchases, regardless of whether or not the cash has entered your cashier.

In addition to these 2, there are two more reports that can help you a lot to understand your need for working capital and cash for future months.

  • Accounts payable
  • Bills to receive

Tip 5. Use graphs to analyze faster

I think you've noticed, but all the tips are based on a good financial tool. Following this idea, when you have a spreadsheet or software that already gives you analyze your results by graphics, you will surely lose much less time in this process.

The idea is simple, track results in a timeline, as shown below:

cash flow with bank analysis - annual chart cash flow

And also do comparative analysis in the same month:

how to interpret the DRE - exercise result statement - monthly chart analysis

Only by the quick analysis of the graphs can you understand whether there are positive or negative variances and if any chart of accounts chart is participating more than others.

Tip 6. Set goals for your key indicators

To get started, find out what really matters to your financial area. As an example, I will list 5 indicators that I find quite important:

  • Recipes
  • Expenses
  • Contribution margin
  • Profit
  • Profitability

Now, just wanting does not cause goals and indicators to be changed or achieved, and as the financial area is not generally the area that takes care of the operation of the business, it may be necessary to work in teams with other areas to achieve those goals.

Business Spreadsheets

Tip 7. Do budget planning and control

Plan at least your next month before it starts, so before you even start it you will have a good idea if you will have more income than expenses, if the accumulated cash will be sufficient to pay the bills of the month and if there is any financial problem in view

For this, a simple exercise of setting goals of income and expenses can help a lot, as shown in the image below:

budget control with cash flow - budget filled

Throughout the month and especially at the end of the month, understand what has happened differently than you had anticipated and always improve from those reviews.

The Right Tool for Financial Managers

To follow these tips you need a good financial management tool and I strongly recommend our spreadsheet cash flow, which is simple to fill and rich in analytics, charts and indicators ready for you to analyze.

Excel Spreadsheets


  1. Talk Ilidio! We are very happy to see your comment. We work every day to help entrepreneurs and help grow your business. Knowing that LUZ has been helping you through these years is very rewarding. Whenever you need you can count on us and if you want to take any questions just tell us! =]

  2. 4 years I met the Light - Spreadsheets, and I was studying and understanding the same Spreadsheets, and to complete I discovered the Blog Light, today I have acquired knowledge and technique of HR Management, Person Management (Conflict Management, Performance Evaluation by Competence , Salary and other positions), Financial Management, Logistics, and I already have my own business in order to implement .... All this I achieved because one day someone decided to create this Company .... Light Laboratory of Ideas .... thank you team light


Please, write your comment
Please enter your name