For a small to mid-sized business, cash flow supports the growth, prosperity, stability, and survival of your firm. In other words it is like the air that we breathe and without it we would not survive.

Are you continually working to determine what your cash balance is? If you are, this is an indication that something is wrong. You should focus your talents and abilities on growing your business rather than fighting the constant cash flow issues. You started this business because you wanted to achieve certain goals that you set for yourself, not become an accountant or bookkeeper. You are the only person with the energy and vision, who really cares about the ongoing growth and success of your company.

Here are some tips to be Cash Flow Positive that when you implement them will change the way your business is managed going forward:

1. Know your cash balance. Success in business depends on having accurate and timely information, and that includes knowing what your cash balance is at any point in time.

2. Keep your work current. An accurate and timely cash balance demands that all of the work in your accounting system is completed daily. Don't wait until tomorrow to complete today's work. If you do this you will always have the numbers you need when you need them.

3. Hire the right people. If you find that you are determining the cash balance it is an indication that you don't have the right people. If you are past the start up phase, and have an accounting staff, you must make sure that they understand that they must focus their efforts on monitoring the cash balance as well as the sources and uses of cash, and keep you informed of status of your cash. 

4. Cash Flow Projections-A Necessity. Cash flow projections are important when making intelligent and informed business decisions. A properly prepared cash flow projection will let you plan for cash shortfalls before they become a problem.

Following these tips will go a long way to eliminating your cash flow worries and enable you to achieve the goals you set when you started your business.  With cash flow under control and properly managed, you know have the time, energy, and focus to meet with new customers, develop new products, and build relationships.