Cash Flow Forecasting

What Is Cash Flow Forecasting And Why Is It Important?

When it comes to small business accounting, some industry best practices can go straight over your head, especially if you are trying to do your accounting yourself. While experienced accountants can be useful, it can be hard to justify paying for them to do all of your bookkeeping for you. This can lead to a lot of stress on your behalf, as you try and navigate the difficult challenge of keeping your accounts during the year.

There are some things that you, as a small business owner, can do to improve your business efficiency and to manage your finances better. One of these things is cash flow forecasting, which involves creating a rough plan that shows how much income you are expecting over the following few months or years.

What Is Cash flow Forecasting?

Cash flow forecasting involves creating a detailed financial plan which does two things:

  • Calculates how much money you expect to flow into your business (income).
  • Estimates how much money is going to flow out of your business (expenses).

First, you need to make an accurate estimate of your daily business running costs. Include things like rent, electricity and other bills and wages. Multiply this by the number of days in your forecast period, and add any other major costs you can think of – include things like one-off maintenance, stock costs and accountants fees. The total of all these will be your total expenses.

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Don't Frustrate your Potential Customers

Don’t Frustrate your Potential Customers – Make it Easy to Buy From your Site

Convincing customers to buy from you is a tough task in itself. It is a big put off for a customer if they are actually wanting to buy, but you don’t offer an efficient system to do so.

Unless you have a simple working system that is hassle free, you cannot give your customer a satisfying buying experience. It is important that you develop a website which is easy to use and makes it easy for them to buy from you – without being frustrated.

The basics would be to design your shopping site with a link to your order page from most of the pages on your site. Very basic stuff.

You should offer the customer multiple payment options. This is because not all customers would be convinced about using credit cards only or paying via Paypal. Some may want to pay by check or bank funds transfer.

It is a good idea to offer these different options for payment to your customers. If you do not offer these different options, your website will suffer ‘cart abandonment’.

Also, it is a good idea to create and place a FAQ page on the website, which can provide the customers with easy answers to small problems that they face. You could also place small demos or install live chat options, so that they may get the solution immediately.

These options are not difficult and can be setup very quickly.


Astroturf Marketing

Moral: Big Corporations Astroturf Each Other, Too

Tech news sites seem a little too gleeful in reporting the media war between Facebook and Google. CNET reports that that fight got a lot dirtier when Facebook hired a PR company to spread naughty rumors about Google.

In the trade, we call this “astroturfing.” Astroturf is a fake plastic grass, from which this practice gets its name. A swelling tide of public opinion is called a grassroots movement. So astroturf, then, is a fake grassroots campaign, made to look like genuine opinion but actually it’s a paid advertisement. You have to start wondering about that comment on Slashdot, that story submitted to Digg, or that tweet from a follower recommending some product – are they really who they say they are?

In a three-part series, a tech blogger explains just how much of what we read online is astroturf. It’s a shocking revelation when you consider just how much business is going on out there. The next time you’re on Facebook and you have a friend there complaining about Google, consider that they just might be part of a “whisper campaign.” And don’t be naive enough to think that Google doesn’t probably do the same thing back!