Are You Tracking These 3 Cash Flow Metrics?
The late Hong Kong businessman David Tang famously said the three most dreaded words in the English language are ‘negative cash flow’. Even as a small business owner, you would probably agree.
There isn’t a need to elaborate on the importance of managing your cash flow and hidden expenses as that’s too obvious, especially amidst the COVID-19 pandemic. Neither is there a need to discuss the variety of accounting software out there that can even help you forecast your cash flow. If you are reading this, you already know that, and are probably actively using them yourself.
However, more than just income statements and expenses, what metrics are you tracking to ensure your cash flow stays healthy?
Cash Flow Metrics You Need to Know
These three metrics could determine whether your business in the red or green this month:
Are you tracking these numbers? If you aren’t, you may be at risk of running into these cash flow issues:
- Not having enough cash on hand to meet debt obligations or supplier payments
- Cash flow ‘leakage’ from some unknown operational inefficiency (hidden costs or even embezzlement/theft)
- Making commitments that your actual business cash flow cannot support
Realistically, it is unreasonable to expect most business owners to know all the numbers off the top of their heads. They already have a lot on their plates.
But is there a solution? The OCBC Digital Business Dashboard’s tiles feature allows you to access your numbers in a quick glance.
Track Your Cash Flow Metrics (and More) Easily with OCBC Business Financial Management
Manage your business’ cash flow, know your exact performance numbers, and more. With intuitive and stunning data visualisations, we give time-starved businesses quick access to a complete view of their business finances. This is flexible and useful for businesses at all stages, from start-up to growth.
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