What is a cash flow driver?
A cash flow driver is an area of your business that drive cash up and down. Some of the most notable cash flow drivers are sales (drives cash up) and expenses (drives cash down). But do you truly know the biggest areas that drive cash in your business? Do you know which of those are fixed (rent) and which are variable/controllable (marketing)?
We’ve created a free worksheet that will allow you to dig deep into your cash flow and see what really drives cash in your business.
This activity pushes you right into your cash flow, gives you the control to identify key cash drivers, and identifies strengths, weaknesses, and opportunities in your business.
To complete the worksheet, follow the instructions below.
- Look at your financials from the past year. Identify key areas that are driving your cash either up or down. Make sure to separate one time and ongoing activity.
- Review the list you created, are any of the areas actually the same? Are there areas that are more significant than others? Write these largest and controllable ones in the next section.
- For each area listed in the 10 most important cash drivers – write which department of your business it’s a part of, and who has responsibility for it.
- Lastly, identify next steps for each of the cash flow drivers. Do you have changes to make, any bottlenecks you can smooth out to improve process?
Need help ensuring your financials are accurate to complete the activity? Want to talk through your results? Our team is here to assist in making sure you get all the information you need from this worksheet.
At All In One Accounting, we take businesses from financial chaos to business clarity and beyond. Our elite team of Accountants, Controllers, and CFOs are ready to help you in these uncertain times. Visit our website here for more information.