Today listened to a FB live from a consultant who specializes in advising companies on managing their cash flow.
Here are the few important points (some could be common sense but then again common sense is not common)
- Forecasting is the most important activity
> Billion dollar business might not need too details to save pennies but startups need to be more detailed
> Small stuff like 3-in-1 coffee might show up as extraordinatry costs if there are cases of theft and misuse
> Pay attention to sudden increase (maybe decrease) in expenses and scrutinized them
> Look into the future, project what is the cashflow and expenses going forward
In the end the expert says what gets monitored/measured gets done. So periodically schedule some monitoring and forecasting activity to ensure on the right track.