DEFINITION
Records of all cash coming into and going out of your business, sorted into applicable cash streams
IMPORTANCE
Tracking different cash streams can highlight trends that will develop accurate cash flow projections. Regularly monitoring these streams can alert you to shortages before they happen, allowing you to make tweaks to prevent them.
EXAMPLE
- Customer sales and payments
- Vendor purchases and payments
- Petty cash on hand
- Payroll
- Monthly bills
- Daily cash reconciliation
- Monthly bank reconciliation
