?Cash Flow Tracking: A Core Business Finance Skill

I’m sure you have a specific skill, a passion, or a drive that led you to start your own business. I’m also sure that you will succeed in it.
But one important thing about being a business owner is understanding every pillar of your business well. It’s true that, especially in the early years, you need to manage everything yourself. It’s also true that even 20 years into your business, with a full team in place, you still need to be able to understand what’s going on.
Learning about marketing, sales, finance, and operations is not optional—it’s a necessity when starting a business.
Without this knowledge, and by simply winging it, success becomes a matter of chance.

So, what do I mean by business finance?

It’s simply the ability to understand the flow of money in and out of your business—allowing you to gauge performance and use the precious resource of money more efficiently.
I need to highlight at this point that business finance is completely different from personal money management.

Business finance is a topic that should be taught at all incubation hubs and chambers of commerce, helping business owners become more informed and confident, which in turn leads to higher success rates.

While business finance covers various aspects—such as budgeting, controlling expenses, tracking spending, emergency funds, revenue, profit and loss, and business growth—one of the most critical elements from day one is having a cash flow system.
Developing a template—and eventually a system—to track the cash coming in and going out of your business is key.

This helps you understand your:

• Level of expenses
• Level of income
• Fluctuations in income
• Increases in bills and costs
• Cash balance
• High-value purchases

And supports you in making important decisions such as:

• Whether you should change a vendor
• Whether you need to increase income sources
• Whether you need to prepare for an upcoming holiday season
• Whether you need to dip into your emergency fund for the coming month

With a system like this in place, you’ll know exactly what’s left in your bank account. You’ll stay on top of your cash—feeling confident and at peace.

Most financial stress comes from not knowing what’s happening—from uncertainty.
But the best thing about money is that, with the right practices in place, you can eliminate that uncertainty.
And to build the right practices and systems, you need knowledge of business finance.

The best part? That’s exactly what I do—educate and empower business owners to understand their business finances and make timely, strategic decisions.
Visit our visit to start your journey toward financial peace today!
 
Written by
Mrudula Muralidharan
Finance coach and Founder
Million Goals