How to manage your company’s cash flow

Cash flow is one of the most important aspects for the financial health of a company. It is through it that it is possible to follow the entries and exits of money, ensuring that there are enough resources to pay the bills and invest in business growth.

The importance of cash flow

Cash flow allows managers to have a clear view of the company’s finances, making it possible to make strategic decisions based on concrete data. In addition, it helps identify possible financial problems and plan the future of the business.

How to control the cash flow

To control the cash flow, you need to register all the company’s entries and outputs. This can be done through financial management spreadsheets or software. It is also important to categorize expenses and revenues to facilitate later analysis.

  1. Record all money entries, such as sales, loans or investments;
  2. Write down all money exits such as supplier payments, salaries and operating expenses;
  3. Calculate the balance available at the end of each period;
  4. Analyze the results and identify possible problems or opportunities;
  5. Plan the future based on the information obtained.

How to use cash flow to make decisions

Cash flow can be used to make various strategic decisions, such as:

  • Invest in new projects or expansions;
  • Negotiate payment deadlines with suppliers;
  • Reduce operating expenses;
  • Seek new sources of revenue;
  • Anticipate debt payments;
  • Hire or dismiss employees;
  • Review Product or Service Prices.


Cash flow is a key tool for a company’s financial success. By doing efficient control and using the information obtained to make strategic decisions, it is possible to ensure the financial health of the business and promote its growth.

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