How to manage your cash flow like a pro: the 5 key indicators to track
Cash flow is the lifeblood of any business. Managing it well lets you plan your projects, secure your finances and avoid unpleasant surprises. Yet many entrepreneurs manage their cash flow only roughly, wasting time and money. In this article, we detail the 5 key cash flow indicators and explain how tools like Dirigeoo help you centralise and visualise this data for fast, effective decision-making.
Revenue and forecasts
Revenue is the main indicator of your business activity. But knowing your actual revenue is not enough: you also need to anticipate fluctuations and quiet periods.
How to manage it:
- Compare actual revenue with your monthly forecasts
- Analyse by customer or product to identify your key revenue sources
- Adjust your sales actions according to trends
Net margin and profitability
Profitability measures how efficient your business is. A company can generate a lot of revenue and still be unprofitable if its costs are too high.
Calculating net margin: Net_margin = Revenue - Expenses
With Dirigeoo: visualise your margins by project or customer with interactive charts and quickly identify the costs to optimise.
Cash flow
Cash flow shows how much cash you have left to pay suppliers and employees. Even a profitable company can run into difficulties if its cash is poorly managed.
How to manage it:
- Track daily incoming and outgoing payments
- Prepare a monthly cash flow budget
- Anticipate your financing needs
With Dirigeoo: get alerts on critical flows and visualise your future cash position in a simple interactive chart.
Project and budget tracking
Every project has a cost. Without precise tracking, budgets can spiral out of control and hurt your cash flow.
How to manage it:
- Track the progress of each project
- Compare planned vs actual budget
- Analyse the financial impact on your cash flow
With Dirigeoo: manage your projects directly in your dashboard, with progress indicators and budget overrun alerts.
Alerts and notifications
Even the most organised entrepreneurs can miss a deadline or a threshold being crossed.
How to manage it:
- Set minimum cash thresholds
- Get notifications for unpaid invoices or upcoming expenses
- Adjust your decisions quickly
Managing your cash flow is essential for any business. By tracking these 5 key indicators and using a centralised tool like Dirigeoo, you gain visibility, responsiveness and peace of mind. Anticipate risks, optimise your margins and make informed decisions to grow your business.
External reference (in French): Le Coin des Entrepreneurs