Creative Industries Level 5:Cash Management

This week we looked at how to manage your cash income and outcome by keeping track of your money through a business perspective and processes were listed and used ultiple times within a business perspective and modified if the cash flow became unsteady in meeting the standards of income.

• Constantly tracking your use of money
• Gaining more exposure and marketing product(s) with income to increase profit
• Having legal evidence of sales
• Invoicing clients to keep track of deal
• Reminders and contact of unpaid deals

We looked more into cash flow and how to understand it and why it benefits the business and listed three steps to a cash flow such as Receipts are your income, Payments are your expenditures and The Balance which is your expenditure taken from your income. Having a positive cash flow means that you are earning more than you are spending and that you have a steady growth of income but if your income is a negative cash flow, showing that you are steadily losing income due spending money than you are earning.

Creating a cash flow forecast whe starting up a company gives the company a good estimation of what you will be using the money for such as employees, rent and other equipment and etc to consider costs and the overall growth. An accountant can help with the cash flow of the company, with the choice of a Charted or Certified accountant with both doing the job in a similar fashion, payment is thebig difference maker between the two.