As you may have heard, we’ve made it possible for you to link your QuickBooks Online accounts to Pulse.
Contrary to internet definitions, cash flow isn’t just the amount of money moving in and out of your business – it’s also knowing when that money moves.
This feature will import your cash on hand up to the present, as reported by QuickBooks Online. Looking at your historical cash on hand can give you valuable information that can help you lower your risk.
Looking at your historical cash on hand can give you valuable information that can help you lower your risk.
Pulse won’t automatically pull in a lot of transactions or other information you can’t use. It will sync your actual cash on hand so you can make better decisions about the future of your business.
You’ll need to look for two things:
- How accurately you project cash flow
- Any obvious cash flow trends
Project Future Cash Flow More Accurately
Many high school math classes use a textbook that includes the answers to the problems in the back of the book. After doing a set of problems, you could use the answers to help you correct your homework. The answers showed you where you went wrong so that you could prepare for the next math test.
By comparing your projections against your real numbers from QuickBooks Online, you can see how accurately you projected.
Were you higher, lower or right on the money? One business owner may discover that his projections are too conservative – they always trend lower than his actual cash on hand. He sees that he had the ceiling to invest more in his business last year with extra cash to hire consultants, upgrade his computers and save money for December bonuses. It’s discoveries like these that can show you how to become more accurate in your projections for next year.
Discover the Trends
As you plan for the future of your businesses, you’ll have a better idea of how to manage your cash flow if you can base your decisions on historical trends. Remember the moral of the ant and the grasshopper? The ant saw a trend of high harvest in the summer and a dry spell in the winter.
One owner sees that business tends to slow in the summer. When billings boom this winter, he decides to shore up a percentage of revenue to compensate for when the lean months drain his accounts. He creates a cash flow scenario to settle on a percentage amount that he’s comfortable saving.
If you manage your cash flow better, you’ll succeed faster. Comparing your projections with your cash on hand will arm you with a higher degree of confidence when you’re making cash flow decisions.
Here’s the walkthrough that will show you how to integrate QuickBooks Online.