Cash Flow Tools in QuickBooks

If you have a seasonal business, then you know some months are fabulous and some months – aren’t. You have also noticed (I hope) that your profit from your Profit and Loss doesn’t match your cash balance.  That’s because loan payments, payroll tax liabilities, sales tax and more, don’t show on that report, but they definitely affect your cash balance!   Here are 5 tools in QuickBooks that can help you monitor your cash flow.

  1. Cash Flow Forecast (Reports>Company & Financial) – This is a “quick and dirty” tool.  It assumes your customers pay timely as do you (not always the case), but does not account for loan payments or tax liabilities (which can be significant). And, if you don’t enter your payables, this report will give you a very lopsided projected balance!Cash Flow 
  2. Cash Flow Projector (Company>Planning & Budgeting).  This tool project 6 weeks out (I wish it was 8 or 12 weeks).  After you determine for your starting cash balance, you then
    1. Project your weekly cash for 6 weeks    
    2. Enter expenses that are NOT in your Accounts Payable (e.g. payroll, loan payments, sales tax…)
    3. Decide which dates you’ll pay which bills (from your A/P account)

Then QuickBooks shows you a weekly projection.

Click here to see this tool in actionCash Flow

If you are in QuickBooks Online, you may see the a new Cash Flow Tool that projects 90 days. This was a screen shot from a webinar so not as clear as I’d like. Cash Flow

  1. Trackers – These trackers are meant to give you a quick visual as well as a way to filter and/or take appropriate action.  
    1. Income Tracker – What I like about the Income Tracker is the ability to see open Estimates and Sales Orders in addition to Open Invoices and Overdue Invoices – all with total dollar amounts! Starting with 2015, they added unbilled time and expense. Seeing those numbers will get some people moving! Cash Flow
    2. Bill Tracker – New in 2016 was the Bill Tracker.  Like the Income Tracker, you can do 1 action on multiple transactions at one time Cash Flow

Click here to see how you can customize the trackers and take action

  1. The Company Snapshot – Still one of my favorite features in QuickBooks. You can check on payables (very important for cash flow), receivables, account balances, reminders, trends in income and expenses and much more – all in one place.  You can choose from 12 possible reports, organize them any way you want and choose the time frame from the drop-down menu (no custom dates). Past due invoices and bills show up in red, making it easy to pick them out.  You can even print the snapshot.  You can also click on the payments tab to see who’s paid you recently.  If you don’t see this on your toolbar, you can find it in the Company menu.Cash Flow

Click here to take a closer look at this feature.Cash Flow

Hopefully your cash flow is in good shape, but these tools can be very useful.  I’d love to hear which one(s) you like best!

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