Cash Flow Management Basics

About this course

A business can be profitable on paper and still run out of cash. This course explains the difference between profit and cash, shows you how to build a simple cash forecast and helps you spot timing gaps before they become a crisis. It's general information only, so speak to your accountant for advice on your own situation.

What you will be able to do

• You'll be able to explain the difference between profit and cash in plain terms
• You'll be able to build a simple 13-week or monthly cash forecast
• You'll be able to spot timing gaps between money in and money out
• You'll be able to plan responses and set up a routine for monitoring cash

Course outline

1. Profit Versus Cash

   9 min · Lesson notes, example, action task · 2-question quiz

   Profit records what you earn over a period, including sales you haven't been paid for yet. Cash records what is actually in the bank. Confusing the two is one of the most common reasons small businesses struggle.
2. Building a Cash Forecast

   9 min · Lesson notes, example, action task · 2-question quiz

   A cash forecast lists when money is expected in and out, week by week or month by month. It shows the balance you'll have at each point, so you can act early.
3. Spotting Timing Gaps

   9 min · Lesson notes, example, action task · 2-question quiz

   A timing gap is a period when payments go out before money comes in. Spotting it early gives you time to smooth the flow instead of scrambling to pay a bill.
4. Planning Responses

   8 min · Lesson notes, example, action task · 2-question quiz

   When the forecast shows a shortfall, you have options. The best responses are planned early, costed and sequenced so you can act before the balance falls too low.
5. A Routine for Monitoring Cash

   8 min · Lesson notes, example, action task · 2-question quiz

   Cash needs watching regularly, not once a year. A simple weekly routine keeps the forecast current and gives you early warning of changes.
6. Tools you'll need

   6 min · Lesson notes, example, action task · 2-question quiz

   A cash forecast can be built in a spreadsheet, and accounting software can automate much of the data. Choose tools that match the size of your business and your accountant's preferences.
7. Careers & next steps

   6 min · Lesson notes, example, action task · 2-question quiz

   Cash flow skills are valued in finance, accounting, operations and small business roles. This lesson sets out where they can lead and how to check what the work is worth.
8. Final quiz and certificate

   10 questions, pass mark 8 of 10. Pass to get your Reesby Academy certificate with a verification link.