Cash Flow Management

Cash Flow Management

Cash Flow Management

Welcome back to your friendly and informative Moose Creek accounting blog! We are here to share an accounting concept that seems simple on the surface, but it is actually quite complex and vital to the health and future of your business. We’re talking about Cash Flow Management.


Sounds easy, right? Well, that assumption can quickly put your business in deep water in many ways. Without the proper cash flow management plan, your company is more likely to sink than swim. If you’re confused about what cash flow and cash flow management are, stay tuned – you’re not alone. Even big name companies such as K-mart and Toys-R-Us have fallen victim to poor cash flow management. Not to worry! We are here to help.


What is Cash Flow?  Simply stated is the movement of money coming in (income) and going out (expenditures). Think of it as the ebb and flow of the coastal tides where we also see large high and low tides. This fluctuation is normal however if you see a trend of too much low tide, your dealing with a negative cash flow and that can be detrimental. Cash Flow Management covers all the tracking and procedures involved with keeping an eye on your cash flow, to ensure it’s positive. We will cover some of the main issues that cause negative cash flow and how to remedy poor practices, to turn the tides on your business.


  • Low cash inflow is a large culprit to negative cash flow. Your customers may owe you money, but perhaps they are bad at paying on time, or you have set your payment due date too far out. This can be remedied by invoicing often, incentivizing early payment, and penalizing late payment.
  • Over-paying for goods and services can also affect your cash flow. Always shop for the best prices to reduce your overall outflow.
  • Accurately track change orders and variations quickly. With QuickBooks Online (our specialty) you are able to track and create change orders, as well as run complete cash flow reports while in the field. There is no reason to drive back to the office to create a change order, wasting precious time (and fuel).


There are a handful of other procedures and habits that can help your company succeed by creating consistent positive cash flow. Some other remedies include fancy S-curve algorithms which can tell you the future cash flow for each individual job.

At Moose Creek Bookkeeping our goal is to help you understand cash flow and how it works specifically for YOUR business, predict future income and expenses for each job, and teach you best practices and procedures for future positive cash flow. With proper cash flow management, we can predict the future health of your business as accurately as we can predict our tides. Utilizing our vast knowledge of QuickBooks Online and its incredible forecasting tools, Moose Creek Bookkeeping is able to right your ship and have you sailing into the sunset, in the black.