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What is healthy cash flow management?

In business, it’s always essential to keep your eye on the bottom line. But for small business owners and women entrepreneurs, it’s especially crucial to make sure your finances are in order. That’s why I will show you how to create a healthy cash flow management plan that won’t freak you out! So let’s get started!

Cash flow is the lifeblood of any business, but many entrepreneurs have no idea how to manage it. healthy cash management can bring you peace of mind by ensuring your company has enough funds for its daily operation and long-term growth prospects!

I know what this sounds like monotonous tasks such as regularly reviewing bank statements or keeping track of invoices; however, these are just basic precautions that will put anyone at ease when they’re worried about their finances – even if all seems well with revenue generation overall (which should always be verified). It might seem tedious now…but trust me—you’ll thank yourself later.

Here are five simple steps that you can take right now to shore up your finances and get more control over how the money in your business is spent.

You could say that cash flow management is a process, not an event. After all, these are five things you’ll do right away- but they can’t be ignored for long! I will show how to keep them super simple, so there’s no need for coupon clipping or emergency fund withdrawals at the end of every month; instead, we’ll see our balance grow over time together with some patience.


The basic formula of Cash Flow:

Cash In

Minus Cash Out

Equals Cash Left

Plus Cash on Hand

Equal Current Cash Position


This is a huge deal because profit and cash are not the same. Most small businesses that fail are profitable, but they run out of money.

It’s important to be mindful of your cash position, even if you don’t have positive numbers every month. This means understanding how money comes into and goes out from a business so that it can plan accordingly for those times when there isn’t enough revenue coming through or expenses going up unexpectedly.

The key here is watching our finances closely – making sure they stay healthy no matter what!


Cash Flow Management Worksheet

This is an easy worksheet to make your own. I’ve created one in Google docs that you can download here, and it’s completely editable, so there is no need for pre-made rows or columns!

In the spreadsheet, I recommend separating your products (course or coaching), but you can keep this as simple or detailed as at a time. The important thing is that for now, we’re just capturing all incoming money – which includes any cash put into business plus loans from friends/family members who are investing in our success!

Next, label the Expenses rows with all your known expenses. Some never change – whether you make money that month or not! These include internet and phone charges.


Plan to Collect Income

You need to get paid for your services.

I believe in a cash-based business. In my experience, all services are paid for before I even start working on the books, and an automatic transfer coming out of your client’s bank/credit card account each month that gets deposited into mine as soon as it hits inboxes at work!

Suppose you are not collecting payment upfront. Be sure to include payment terms on your invoices, and stick with them. If someone pays late, but you decide not to charge the interest fee – make a note of their courtesy discount, so they know how grateful we are for business!


Plan to Pay Expenses, starting with yourself

Paying your expenses quickly is the key to success for service-based businesses. You can incur them, pay them off and move on with our work!

Put expenses autopay or pay a full-year subscription (which you usually will disconnect). The following is a great way to ensure you never miss an important payment due. Designate two days in advance when your bills need paying so that they are all paid by the end of each month!. 

Pay yourself first and foremost. This is the most important thing you can do for your future self-care! 

Paying yourself once a month or every two weeks can have incredible benefits. It’s not just about improving your finances but also building up self-confidence and motivation! Plus, paying oneself helps us stay motivated in our day-to-day lives.

Make it happen every month! Automate your transferring or write yourself a check. Make sure that the transfer happens automatically so you can spend more time doing what really matters- being with family and friends.


Update Your Worksheet

Keep a close eye on your cash flow by reviewing the worksheet regularly and making any necessary adjustments. For your finances to stay in control, review this information at least once per month so that when there are changes needed, they can be made quickly!


Schedule Time

Set up a recurring appointment on your calendar to do books. Block out this time! Please do not give it up for anything or anyone. Treat like any other meeting that you can’t miss. Your business finances are that important.


As a business owner, it is essential to have a good understanding of your cash flow. This means knowing when and how much money is coming in and going out. You can use the worksheet provided to help you get started. The key is to start with yourself and work your way out. Be sure to update your worksheet regularly and schedule time each week to review everything. And last but not least, download my free documents you should keep in for your business. Having all of this information at your fingertips will help you stay on top of your finances and make intelligent decisions for your business.

about the blogger

Hey there!

Hi! I'm Marinda Broadbent!

I’m an expert QuickBooks Online Bookkeeper, a nerd when it comes to the numbers, and my obsession is teaching business owner their numbers so be confident on grow their business (without it taking over their life).

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Looking for a virtual bookkeeper?

Schedule a 15-min call to see if we're a good fit.

Get in touch

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In business, it’s always essential to keep your eye on the bottom line. But for small business owners and women entrepreneurs, it’s especially crucial to make sure your finances are in order. That’s why I will show you how to create a healthy cash flow management plan that won’t freak you out! So let’s get […]

What is healthy cash flow management?

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