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:
- Paying taxes, salaries, suppliers, and creditors
- Saving money
- Receiving income through sales, loans, or other means
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
- Prepare a Cash Flow Projection: Plan ahead by forecasting income and expenses.
- Keep Accurate Financial Records: Log all inflows and outflows of cash.
- Open a Reserve Account: Set aside money specifically for emergencies or unexpected costs.
- Don’t Mix Business and Personal Finances: Avoid using your business funds for personal use
Managing your cash flow isn’t just about tracking money — it’s about creating financial stability, preparing for growth, and ensuring long-term success.