7 Tips for Managing Cash Flow in QuickBooks Online
Your company’s cash flow is the cornerstone of your finances. Here are seven ways QuickBooks Online can help you improve it.
We sometimes hear people use the terms “cash flow” and “profitability” as if they meant the same thing. This is a common misunderstanding. Profitability refers to what’s left when you subtract expenses from revenue. Your company’s cash flow, on the other hand, tells you how your money is moving into and out of the business. It’s similar to liquidity – the ability to pay your bills. So, you might be profitable but have poor cash flow if you have too much money tied up in unsold inventory or unpaid invoices, for example.
QuickBooks Online provides several ways for you to keep track of your real-time cash flow and improve it. It’s critical that you pay close attention to this metric. You could run a profit and loss report daily and think you’re doing OK, when in reality, your cash flow is in the danger zone. Here are seven ways you can keep a close watch on it.
