Poor cash flow management is the #1 reason most businesses go bankrupt.

I know I sound like a broken record, but it really is that important.

So this week, I’ll show you my simple daily check to keep your cash flow healthy.

The best part? It’ll only take you 10 minutes.

But before we dive in, here are 2 quick tips to make the most out of this review process.

1. Stay consistent. Experiment to find the right approach for your business and then stick to it. Preferably, set aside some time at the beginning or end of each day to complete your review.

2. Use simple tools like an Excel spreadsheet or QuickBooks. Staying on top of your cash flow doesn’t have to be complicated. You just have to commit to doing it.

Alright, let’s get into it.

First, Check Your Account Balances

Log into your bank accounts and review the balance. Take note of how much cash is available. This gives you a quick snapshot of your liquidity—how much cash you have to cover immediate expenses.

But don’t stop here. Knowing what’s on hand only gives you a fraction of the information you’ll need to assess the situation.

Next, Review Incoming Payments

Look for recent deposits.

These could be payments from clients, refunds, or other income sources.

From there, make sure they match your expectations. Are they on time and for the correct amounts? If not, take note and research the issue until it’s resolved.

If a payment is delayed, follow up that day.

If late payments routinely plague your business, get a collections process in place.

Check out this earlier post for more on how to do that.

Then, Check Your Outgoing Payments

These include payroll, other recurring bills, and recent purchases.

Verify that each expense is legitimate, expected, and in the proper amount. If any discrepancies come up, note them and research immediately.

This step not only protects the business from fraud, but it also leads to a sharp decline in unnecessary spending. In other words, if you have to answer for it the next day, you’ll probably think twice about putting nonessentials on the business.

Once You’ve Done That, Compare Today’s Cash Flow to the Forecast

Compare today’s cash flow with what you expected based on your cash flow forecast.

If you’re on track or outperforming your forecast, investigate why that is and double down on what’s working. If you’re underperforming, adjust until you’ve caught up.

If you’re not sure where to start, check out this post for my top tips for maximizing your cash flow.

Finally, Look for Red Flags

Before you log out, give everything a second look to spot anything that stands out. Write down anything unexpected and either resolve it then and there or set aside time to rectify it later. Identifying issues quickly gives you far more options to address them before they become bigger problems.

There you have it—my 10-minute cash flow review process. All it takes is making it a habit and you’ll stay on top of your cash and make more informed decisions to grow your business.

If you’re struggling with cash flow or want to talk about your finances, feel free to reach out. As always, I’m happy to help.

Putting It All Together

Here are your top takeaways from this week’s post.

1. Poor cash flow management is the #1 cause of businesses going bankrupt, but good cash flow management doesn’t have to be complicated. All you need is 10 minutes a day and some simple tools like an Excel spreadsheet or QuickBooks.

2. All you need to do each day is check your account balances and then make sure that your incoming and outgoing payments are on time, legitimate, and in the expected amounts. If not, resolve what you can right then and set aside anything else for further review.

3. Once you have a clear picture of where you stand today, compare your actual performance to the cash flow forecast. Either double down on what’s working or adjust until you’ve caught up.

4. While this 10-minute review’s primary value is in helping you stay on top of cash and identify emergent issues before they can turn into major problems, it also provides you with a valuable opportunity to identify larger patterns and make more informed decisions about your business as a whole.

Hungry for More?

1. Follow me on Twitter and LinkedIn for daily content to take your business to the next level.

2. Book a call to learn how Scalable can transform your SMB.

3. Shoot me an email with your questions or requests for what you’d like me to write about next.

‘Til Next Time,

Connor