We know that COVID-19 is causing unparalleled problems - especially for small businesses.
Now more than ever, it is essential that you know your cash flow and the factors that impact your future cash flow.
We have created this resource center to help you plan your cash flow easily and quickly.
We are in this together.
Plan your cash flow during the COVID-19 crisis:
5 ways to stress-test your business now!
We know that COVID-19 is causing unparalleled problems - especially for small businesses.
Now more than ever, it is essential that you know your cash flow and the factors that impact your future cash flow. Watch this FREE webinar to learn 5 ways that you can stress-test your business to help you plan your cash flow easily and quickly.
Access the webinar nowThis webinar was super awesome, down to the most important fundamentals.
One of the best webinars I've seen in quite awhile... Thanks!!!
Nice job on the webinar... very actionable for business owners...
Wonderful info! Thank you both very much!!!
Thank you! CashFlowTool is one of my MUST have expenses during this pandemic.
Price reduction - now extended until further notice
Get 50% off
Need help with your cash flow? Get a permanent discount now.
Get it now
Cash Flow Essentials
Learn critical and essential cash flow concepts... now for free.
Access now
Managing Cash Flow in a Crisis
Download this FREE guide to instantly learn how to manage your cash flow during a crisis (and beyond).
Get the Guide
Learn how to run a great cash flow meeting with your clients.
Learn more
Finagraph is proud to partner with American Express and a growing group of companies on their Stand for Small initiative. Stand for Small brings together valuable benefits from leading brands into a single, easy-to-use digital platform.
Together, we can give small businesses access to relevant products, information, tools and services to support them during this critical time.
Visit the Stand for Small site to also see a special offer for CashFlowTool.
Look at your expenses and decide which are the “musts” and which are the “wants”. For the “musts”, you’ll need to decide which are critical to run your business and then based on what you decided, see if you can downsize them while maintaining the viability of them. Next, prioritize the “wants” and then decide which ones you can do without for now and potentially cancel them. Some vendors lets you put the services on “hold” so you might consider this especially if you have negotiated a good deal on the base cost of the expense and don’t want to lose the special “deal”. CashFlowTool offers great insights to your past and future expenses. Watch the video to quickly see how CashFlowTool let’s you not only see the expenses, but also evaluate the real-time impact to your cash flow.
Learn more
Go deeper on "Evaluate your expenses right now!"Now is probably the most important time in your business to fully review your future income. You need to know which customers are going to hopefully continue with you at this time. The first thing to do is to use CashFlowTool and view the list of customers (sorted by revenue) that is coming in over the next 3-6 months. You are going to want to immediately see the impact on your cash flow if you no longer have the customer income coming in. By doing this, along with the expense control (above), you will have a good picture of what your cash flow really is and the overall impact to your business. You may find that some customers won’t have a big impact on your cash flow, whereas others will. Those that you prioritize is strategic to your business, reach out to them and assess where they are at. If they are on the fence, and you still need them, consider offering a discount to keep them.
Learn more
Go deeper on "Review your future income"
Create what if scenarios to model what cash could look like
with new revenue and expense assumptions
Now is a time to understand what the best and worst case scenarios will look like from a cash perspective in your business. Stress test your P&L by creating different revenue and expense “what if” scenarios based upon the new realities that COVID-19 has created for your business. What if my sales stay flat for 4 months? What if my sales decline by 40% over the next 90 days? What if I reduced staff? What if my supply chain is disrupted? Understand what best case and worst case looks like. Create financial thresholds that trigger additional business decision points. Revaluate regularly to make sure you are working with the latest information.
Learn more
Go deeper on "Stress test your P&L"How long can we survive with our level of cash today?
Burn rate measures how fast a company spends its available cash. This is typically a measure used in the early stages of a company as they work towards profitability, however, it is also a useful metric when there is a major change or shock to a business (i.e., revenue suddenly slows or stops). In these cases, it helps a business determine how long they can survive with the cash they have available today. Once you understand the components of your burn rate, you can plan out different options you have to manage it (i.e., make your cash last longer). Managing your cash burn rate is all about managing monthly expenses.
Cash burn rates are typically measured monthly but can be measured weekly or daily if necessary. There are two types of cash burn rates:
You can calculate these rates to learn more about the performance of your company in the past as well as plan your cash burn for the future. When there is a major change to your business, your burn rate moving forward could be the difference between your business’ survival and salary cuts, layoffs or business closure.
The first step to managing a metric is to measure it. CashFlowTool offers the ability to measure historical cash burn (or cash surplus), both gross and net, for the last 12 months, as well as the tools to forecast cash burn for the next 6 months. Watch the video to quickly learn how.
Learn more
Go deeper on "Calculating and forecasting your cash burn rate"How much revenue do I need to cover my expenses?
The cash break-even point is the minimum amount of cash revenue required for a company to achieve neutral cash flow (cash inflows = cash outflows). A cash break-even analysis measures this over a period (i.e., 6 months) and will help you find the amount of revenue you need to generate to cover all your cash expenses during that period. Here are the steps to preparing a cash break-even analysis:
CashFlowTool offers the ability to create a cash break-even analysis. Watch the video to see how.
Learn more
Go deeper on "Cash break-even analysis"Carefully and regularly monitor your outstanding invoices. Don’t assume all payments will come in as scheduled. Reach out and engage with your customers to get a better understanding of the status of their businesses and realities of any delays in being able to pay for outstanding obligations. Evaluate which customers you are able and willing to offer extended payment terms to and be sure to consider the impact on your business.
Learn more
7 Cash Flow Tips Every Business Should Know
