Cash flow is the lifeblood of any business.

Understanding how money moves in and out of your company will help you measure the amount of cash you have on hand—and prepare you for any surpluses or shortages down the road.

Projecting your cash flow is a bit like preparing your budget and balancing your checkbook at the same time. You’ll begin with a starting point—say, the first of the year—and then you’ll outline your anticipated income and expenditures for the next several months or year. Be careful about assuming too much—and don’t forget to factor in everything from insurance payments to raises in employees’ salaries.

To read the rest of this article by Colleen DeBaise, go to http://bit.ly/97Rfx7.

Related posts:

  1. Six Tax Tips for New Business Owners
  2. Small Business Balance Sheet
  3. 4 Tips to Get the Most From Your Tax Planning