Having a handle on cash flow should be a major priority of any small business owner. Business owners are always looking for ways to improve and calculate cash flow. A great way to avoid cash flow problems is to forecast and manage your businesses financials constantly.
QuickBooks has a great feature built in to it that many people don’t utilize that can increase the cash flow management of the business. It is the “Sort by” feature within the bank register. This feature can be found on the lower left hand side of any QuickBooks account register. My preferred way to use this feature is to sort the bank register by “Cleared Status.” What this does is allow you to reconcile the bank account of the business to the daily online bank balance. By using this feature you are now starting to manage the cash flow of your business.
When using the “sort by cleared status” feature it gives you a look at where your business currently is with cash flow, but more importantly where it is going. Now you can see your bank balance as of today but also all pending checks, automatic payments and instransit deposits.
Cash is king; use this feature to get a handle on your cash.
