Cash is vital for operations. It helps charities pay for salaries, facilities, tech, and so on. There are two key underlying principles for effective cash management: visibility of current cash and an understanding of future cash. The former helps you make decisions, the latter helps to identify potential shortfalls and plan actions to address those shortfalls.
Our latest video runs through five key steps that help you keep up with the above principles and practice effective cash management. The five steps are as follows:
- Understand your current cash position
- Forecast your cash receipts
- Forecast your cash outgoings
- Produce a timed cashflow forecast
- Plan key actions
The video delves a little deeper into the above, offering information that can help charities ensure stability and structure around cash management.