On many occasions, cash problems are caused by the lack of planning within a business, even at times when sales are low. For this reason, it is important to be able to count on a series of reports and  statistics in order to avoid any money trouble at your beauty salon in the future.

Knowing your Business's cash flow is fundamental when you decide to take on any investment project. Based on the information provided in your Cash Flow report, you can make strategic decisions for the future based on financial details, such as your business's cash inflows and outflows throughout a given period of time. The difference between cash inflow and outflow is called net cash flow, which indicates a business's liquidity; if there is a positive net cash flow, the cash inflows were higher than the cash outflows, whereas if there is a negative net cash flow, the cash inflows were lower than the cash outflows.

Why is it important to measure your business's cash flow?

Because it allows you to clearly understand your business's liquidity in a flash, as it provides you with key information which will help you to make decisions based on questions you may have, such as:

• Can I afford to keep stock?
• How much money do I have available to buy new products?
• Can I pay for products up front, or do I need to finance my payments?
• Can I pay my debts on time, or do I need to refinance them?
• Can I invest any surplus money in new equipment?

Have you found this article interesting? If so, from now on, this feature is available in your FLOWww system. In order to obtain your Cash Flow report, you will need to configure your business's incomes and expenses. The next step is to configure your cash inflows and outflows. It's very important to be aware that all the income generated within your FLOWww system (daily sales, deferred payments, etc.) will be automatically added to your Cash Flow. This means that you will only have to configure the concepts that your system doesn't automatically receive. Once you have all your cash movements configured, both incomes and expenses, you will be able to see your business's Cash Flow Report.

We hope that this information will help you make strategic decisions in the future and increase your beauty salon's profitability. If you have any doubts about how your Cash Flow works, you can consult the guide which can be found within your FLOWww system.