Projecting Your Cash Flow Calculator

Being a small business owner comes with ups and downs as sales ebb and flow.

Having enough cash flow to sustain through leaner months is key to keeping the doors open. Using a cash flow calculator, you can find the right combination of payment terms, cost of your goods, profit margin, and other factors that can put your business in the black.

 

A business owner can forecast their cash flow with data from a few months of sales and expenses. If you know your average sales for a month, credit terms, and monthly growth, you can begin to put together a picture of your business’s financial health. Remember, however, that your inventory and receivables not yet collected can’t help your cash flow. You may find it helpful to reduce your inventory or lower the number of sales on credit if you need more cash flow to cover another expense or a slow month of sales.
 

Frequently Asked Questions

 

What is cash flow?

Cash flow is the amount of money you have going in and out of your business, ranging from customer payments to bills due to vendors. Learn more about managing cash flow with solutions from SouthState.
 

What are signs of cash flow problems?

Negative cash flow happen when the cash going out is more than what’s coming in to the business. A business may experience a cash flow gap when they need more money for current expenses than they have on hand.
 

How to increase your cash flow?

You can increase your cash flow by collecting receivables in a timely manner, reducing the credit you offer, and working with your business banker.