| Business owners, especially small business owners, | | | | monthly expense report. This report would include |
| need a cash flow management process in place for | | | | your daily payment (purchases) activities. If you |
| their business. It is critical to know how much money | | | | purchase something for your business then you |
| comes in and how much money goes out so you can | | | | would document the purchase in your expense |
| increase your success and avoid failure. You can set | | | | report. You would document what the expense is (if |
| up a simple & easy cash flow management | | | | it's office supplies, phone expense, marketing |
| process by utilizing an Easy Money Management | | | | expense etc.), where you bought it and how much it |
| System. | | | | cost. This information should be recorded in your |
| Your Money Management System can be done | | | | Expense Report for that Month. |
| electronically on excel or Lotus 1-2-3 software or | | | | Cash Flow Management Component #2: You need to |
| through using a manual ledger/spreadsheet. No | | | | have a monthly Income Report, which will show your |
| matter which method you use, your money | | | | daily sales activity information. You will need to keep |
| management system must first include: | | | | track of how much you sold each day. Record this |
| Key #1, which is having an organized filing system. | | | | information in your monthly income spreadsheet. |
| This filing system is where all your physical | | | | Make sure that for each sale you record the date |
| documents and statements of your income, | | | | and how much income your earned for each income |
| expenses and any business related documentation | | | | transaction. Many Internet marketing people use |
| should reside. Your filing system is of major | | | | information from their PayPal and Clickbank accounts |
| importance because every transaction expense you | | | | to accurately keep track of their daily and monthly |
| have for a business must be documented. You have | | | | income. |
| to have some form of documentation (back up) for | | | | Cash Flow Management Component #3: You need to |
| that expenditure, as this is a requirement for tax | | | | have a Cash Flow Management Report. This report |
| preparation. | | | | reflects the activity you have in your business |
| Your documentation enables you to prove to the | | | | checking account(s) on a daily basis and can be easily |
| IRS that you truly bought or purchased the | | | | created using an excel spreadsheet. Very much like |
| expenditure in question, thus providing proof if you | | | | your bank transaction register for your checkbook, |
| should be audited by the IRS (if here in the USA) or | | | | but when developed for showing all your accounts |
| your government taxing authority. Your business | | | | (checking, money market, savings, line of credits etc.) |
| must provide these physical documents, so include | | | | you will get an overview of total cash available for |
| them in your filing system from day one. | | | | you at any given time. |
| What are the other key components needed in your | | | | Using an excel spreadsheet is easy and an excellent |
| Cash Flow Management process? There are three | | | | format to keep track of the cash flow for your |
| more key components you should include. Let's look | | | | business. Follow these tips to set up an efficient and |
| at each component in detail. | | | | effective cash flow management system. |
| Cash Flow Management Component #1: You need a | | | | |