Cash is important in every business. Cash is EVERYTHING for bootstrapped SME’s. I doubt anyone cares about the huge profit projected for the end of the year if you can’t make payroll next week. Out of Cash = Out of Business (OOC = OOB)
OOC = OOB is a lesson I learnt from a bloke called ‘Poli’. Poli is an accounting lecturer who tells it how it is. No cash = no business. It doesn’t get much simpler than that.
Since that heady day way back in 2010(!) when Poli taught me this gem, I’ve had a daily cash report for The Physio Co at my finger tips every morning. Not once a week or once a month, every single day.
It’s so straight forward that a trusty TPC bookkeeper gets to work, checks the bank balances and plots them on a very simple spreadsheet. Where do we store the report, in the cloud of course! I can access it from almost anywhere.
A daily cash report combined with cashflow projections helps me grow our business fast with much less concern about ever being OOB. If you are a CEO or responsible for business performance, I reckon you should monitor your cash daily.