Cash Budgeting Techniques

The C.A.S.H Framework How do you improve CASH? Follow my framework: C - Collections Efficiency Quickly collecting receivables allows for immediate use of funds in operations, investments, or debt payment. How? • Implement an automated invoicing system. • Systematically follow up overdue payments. • Encourage shorter payment terms or early payments. A - Accurate Forecasting Forecasting helps anticipate liquidity needs and prepares you for situations that could strain cash reserves. How? • Use financial forecasting software. • Regularly adjust forecasts based on actuals. • Collaborate with sales, operations, and procurement for their insights. S - Streamlined Expenses Optimizing operational costs increases the available cash in your business. How? • Regularly audit expenses to identify inefficiencies. • Negotiate better rates or terms with suppliers. • Use cost-saving technologies or automation. H - Healthy Investment Wise investments contribute to future cash flow, and efficient inventory management frees tied-up cash. How? • Develop a process for evaluating investments. • Use just-in-time inventory management. • Regularly review and dispose of underperforming assets. 👉 Which framework or tactics do you use to improve your Cash? Save this post for later and share it around ;)

One of my clients with a new business had a big goal → Earning £5k a month after taxes. She wanted to move house and live independently. Here’s how we helped her 👇 First, we reverse-engineered her goal. To net £5k a month, she needs £60k annually. Considering taxes, she needs to declare around £7k monthly in dividends. This means aiming for a net profit of approximately £84k annually before taxes. We broke it down further. How many clients does she need? At her current project price, She needs about 14 clients monthly to hit that target. Breaking down big goals into manageable steps is key. With a clear plan, she can focus on landing 14 new clients. This saved her the guesswork and gave her a roadmap to her goal. We’re already seeing progress. Helping clients like this turn their dreams into reality is why I love being an accountant. Cashflow issues are a big trouble to your business. Here are proven ways to fix your cashflow and get the money rolling in 👇 1. Remove Payment Barriers     - Set up a card facility for deposits and early payments.     - Add online payment options for convenience.     - Allow direct debits to streamline payments. 2. Secure Advance Payments     - Offer pre-sale discounts or early-bird deals to encourage upfront payments.     - Allocate enough funds to deliver the service later. 3. Create a Realistic Budget     - List expected income and expenses for the upcoming months.     - Ensure revenue exceeds expenses.     - Cut unnecessary costs and be realistic with your budget. 4. Build an Emergency Fund     - Set aside money each month for an emergency fund.     - Use this fund to cover unexpected costs. Implement these, and you’ll see a difference in your cash flow. What strategies do you use to ensure a consistent cashflow?

My salary barely stays with me! Most of it goes away in rent, outings and other expenses. I have heard so many people mention this almost every week. In India, where incomes can be unpredictable, a budget isn’t just a good habit but a necessity.  A simple budget helps you manage expenses smartly, save for the future and reduce financial stress. This is how you can do it right: → Your salary isn’t just what’s credited to your bank account. Factor in side hustles, bonuses, deductions (PF, taxes), and expenses before setting your budget.  → The 50/30/20 Rule is a great starting point to manage your rent, groceries, utilities, dining out, savings and investments. If this feels unrealistic, tweak it. → Where does your money go? Most people underestimate small expenses. Use a simple Google Sheet or budget app to track spending, then cut what doesn’t add value.  → The easiest way to save is to remove temptation and set up automatic transfers to Emergency Funds, SIPs & Investments and Savings (Home, Travel, Business)  → Start with an emergency fund, clear high-interest debt (credit cards, personal loans) and invest in wealth-building assets (SIPs, PPF, NPS).  Budgeting isn’t about restricting yourself but financial freedom. A well-managed budget lets you spend guilt-free on things you love while securing your future.  What’s your best budgeting tip? #budgeting #moneymanagement