Infographic: cash flow and keeping the money coming in

Cash flow problems? Keep the money coming in

Make sure your business is making a profit

To get a snapshot of your business's financial health, complete the following tasks monthly, and at the end of the financial year:

1. Balance sheet.
2. Profit and loss statement.
3. Cash flow statement.

1. Balance sheet

Your balance sheet reveals the financial health of your business on any given day, and will tell you what your business is worth. 

Assets minus liabilities = the value of your business.

Useful tools

• Basic bookkeeping principles
• Sources of finance

2. Profit and loss statement

Your profit and loss statement reveals your business' income and expenses over a period of time, and lets you know if your income's no longer meeting your expenses.

Here's a tip: Find ways to take action so you're always making a profit. For example, if business expenses are increasing, consider raising your price.

Useful tools

• Marketing plan
• Pricing it right
• Calculate your profit and loss

3. Cash flow statement

Your cash flow statement reveals what money's coming in, and what money's going out of your business – for a set time period. 

Cash flow statements can provide warning signs to help you avoid future financial trouble.

Here's a tip: Net operating cash flow is the amount of cash that a business has after paying its bills. If net operating cash flow is less than profit after tax -– you're spending more than you earn.

Tools to help:

• Cash flow forecast
• Financial calendar
• Five warning signs your business is in trouble
• Pricing for improved profit

Further support and resources

• Give us a call at Business Victoria by phoning 13 22 15
• Subscribe to Business Victoria's eUpdate
• Join our community
• Workshops and Events