Manage Your Company Cash Flow in QuickBooks

People involved in businesses or running their own small businesses worldwide and are using several accounting software. QuickBooks accounting software is one of them and is the most widely used accounting solution which helps you to manage their financial activities and take care of business health effectively. Moreover, QuickBooks enhances itself to provide better business deals and improve the cash flow of the businesses even better than before. This ultimate guide consists of some of the important factors that may help to manage your company’s cash flow in QuickBooks as well as in improvement in QuickBooks. To explore more, connect with team of via dropping an email or do 24*7 live chat with dedicated experts.

What is the QuickBooks Cash Flow?

Cash flow is a cash-in and-out step in any business. Cash inflows are revenue streams coming into the company. The loss or what company incurred consists in the costs Cash outflows. It is divided into three categories of activity including investing, operating, and financing.

In other words, a cash flow statement is a statement that indicates the cash in and out of the company. It keeps a better track of the cash in the business. It also provides insights regarding the liquidity of the company.

Tools to Manage your Company’s Cash Flow in QuickBooks

There are some tools available in QB that actually helps you to increase the cash flow management for your business. Here are the following best options that may help you to have as the best cash flow management:

  • QB has an inbuilt feature that lets you to customize invoice template
  • Automatic payment reminders allow to set-up reminders for the invoice including the overdue invoices
  • It summarizes the invoice details to the customers waiting for a clear invoice report
  • It can help you to set-up finance charges during the stage of overdue payments
  • Reducing the collection period on average may greatly help in having a drastic import on the cash flow in QB of your company
  • Also, it is necessary to use these tools to have right cash flow management.

Steps Involved in Running a Cash Flow Statement in QuickBooks?

Accessing cash flow statement in QuickBooks is pretty easy with its advanced features but before running the report, you need to do the following tasks that are listed below:

💠 Update your QuickBooks with all expenses and income as well.
💠 Make sure that all liabilities and assets are well recorded.
💠 Reconcile the bank statement is also important.

Once you update your QuickBooks with all the above then it is ready to run the cash flow statement. The steps involved to run the report:

💠 Initially, select Report that you can find on the left menu
💠 Next, select “All Reports
💠 Then click on the “Business Overview” option
💠 Now click on the Cash Flow Statement
💠 On the right-hand side of the screen, you can see the Customize button
💠 Lastly, click on the same in order to customize the format and dates of the report.

You can also forecast the cash flow with QuickBooks cash flow projector. It enables users to perform scenario analysis and projection viewing without altering QuickBooks ledger data. The steps are as follows to do:

💠 Firstly, go to Planning & Budgeting within the Company menu
💠 Next, hit the Cash Flow Projection
💠 Now select the bank account for projection
💠 After that predict the cash receipts for the next six weeks
💠 To proceed further, estimate the business expenses
💠 Finally run the report and view the cash flow for the next six weeks.

Total Time: 35 minutes

Why it is Important to Manage your Company Cash Flow in QuickBooks

Cash flow is crucial for every business whether it is a small or big size business. Consistent cash flow is required to keep the company running.

Manage Cash Flow:

QuickBooks allows you to know how much cash they have in hand as well as tracks and organizes the company’s data. This also provides the cash-flow statement for the company. The practices that the businesses conduct to monitor the gap between the time taken to make payments and receive cash are known as cash flow management. Businesses prefer to postpone payments while allowing those who owe them to pay at the earliest opportunity.

Make Better Decisions:

Cash flow statement helps make informed choices, as it offers visibility into cash inflow and outflow. Understanding the cash position in the sector is essential to the company’s success. QuickBooks produces and gives a simple description of the cash flow for a given time frame.

Insights about Financial Health:

Cash flow statement is one of the three essential statements any business needs to make. The other two are statements of income and balance sheet. QuickBooks lets you generate and view these statements easily. Cash flow statements help in forecasting the business’ future need for cash.

In Conclusion

Hope this guide helps you in how to manage your company’s cash flow in QuickBooks with ease. You’ll get a better understanding and cash flow management after going through this ultimate accounting guide.

In case, if still seeking professional help, feel free to contact the team via dropping an email along with your query details. You can also reach them via live chat that is 24*7 available. Team is highly experienced in rectifying the QuickBooks related errors. You can even fill-up the form of queries related and the team will respond to you in the least time frame or may take 2-3 hours.

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