Monitoring cash flow involves tracking income and expenses meticulously. Here are some key steps:
Regular Financial Statements: Prepare and review financial statements like profit and loss statements, balance sheets, and cash flow statements regularly. Budgeting: Develop a realistic budget that reflects both expected income and expenses. Cash Flow Forecasting: Use historical data to forecast future cash flows and prepare for potential shortfalls. Expense Tracking: Use accounting software to track all expenses accurately and categorize them appropriately.
