The Financial Literacy Initiative
The Financial Literacy Initiative is a national platform to enhance financial education and comprises over 40 platform partners from the financial sector.
W SE Every month, the Financial Literacy Initiative offers you useful and valuable tips and information on financial matters for businesses.
W SE Every month, the Financial Literacy Initiative offers you useful and valuable tips and information on financial matters for businesses.
THIS MONTH: MANAGING YOUR CASH FLOW
WHAT IS CASH FLOW?
Cash flow is basically the money that flows in and out of the business. This includes paying taxes, salaries, suppliers, creditors, savings as well as receiving cash through sales, loans etc. One of the reasons why an SME can fail is because of poor management of its cash flow.
HOW TO MANAGE YOUR CASH FLOW:
1. Always prepare a cash flow projection, which will help you to plan for your cash flow.
2. Keep a record of your finances by noting them down, this will help you to better control your finances and keep track of the cash flowing into and out of your business.
3. Make it a priority to open a reserve account that will be used for unexpected emergencies for your business.
4. Do not combine your personal and business finances in one account. You may end up using cash that was intended for the business growth for personal items.
2. Keep a record of your finances by noting them down, this will help you to better control your finances and keep track of the cash flowing into and out of your business.
3. Make it a priority to open a reserve account that will be used for unexpected emergencies for your business.
4. Do not combine your personal and business finances in one account. You may end up using cash that was intended for the business growth for personal items.
CASH FLOW EQUATION
💰 Cash Flow Diagram
- Customers, Sales, VAT, State
- − Costs
- = Suppliers & Trading Profit Tax
- Employees
- − Interest (Banks)
- − Taxation
- − Dividends (Shareholders)
- = Profit Retained
Takeaways
Financial Literacy Initiative: Monthly Business Tip
A national platform with over 40 partners from the financial sectorEvery month, the Financial Literacy Initiative (FLI) provides valuable insights and practical tips to help businesses—especially SMEs—make informed financial decisions.
This Month's Focus: Managing Your Cash Flow
Cash flow refers to the movement of money in and out of your business. It includes:
Poor cash flow management is one of the top reasons why many small and medium enterprises (SMEs) fail.
Tips to Better Manage Your Cash Flow
Managing your cash flow isn’t just about tracking money — it’s about creating financial stability, preparing for growth, and ensuring long-term success.