Getting Your Numbers Right Before You Begin
Most businesses fail because they run out of money, not ideas. Before you dive into cash flow management, let's make sure you've got a clear picture of where you're starting from.
Why This Foundation Matters
You can't manage what you don't measure. And honestly, trying to budget cash flow without understanding your current financial position is like trying to navigate without knowing where you are on the map.
I've seen too many business owners jump straight into forecasting without having their basic records sorted. They end up with beautiful spreadsheets that mean nothing because the underlying data is incomplete or just plain wrong.
Real Talk
Three months into working with clients, we often discover they've been missing transactions, mixing personal and business expenses, or simply guessing at numbers. Starting clean saves everyone time and stress down the road.
Your Readiness Checklist
These aren't just suggestions. They're the bare minimum you need before cash flow budgeting makes any sense.
Bank Accounts Reconciled
Every transaction from the last three months should match your records. No mystery deposits or forgotten payments lurking in there.
Clear Income Sources
You should be able to list where money comes in, how often, and roughly how much. If revenue feels random, we need to dig deeper first.
Known Fixed Costs
Rent, subscriptions, loan payments, insurance. The stuff that hits your account every month without fail. Write them all down.
Variable Expenses Tracked
Materials, utilities, casual labor. Things that change month to month but still need monitoring. Get at least a rough pattern going.
Separated Business Finances
Personal and business money shouldn't mix. If they do, untangle them now. It makes everything clearer and keeps the tax office happy.
Outstanding Invoices Listed
Who owes you money? How much? When is it due? Same goes for bills you need to pay. Get it all on paper where you can see it.
From Someone Who's Been There
I thought I had my finances under control because I checked my bank app every morning. Turns out I was only seeing half the picture. Taking two weeks to properly organize everything before starting the program saved me from making decisions based on incomplete information.
Hamish Blackwood
Construction Services, Brisbane
The Setup Process
This isn't complicated, but it does need to happen in order. Skip a step and you'll probably end up backtracking later.
Gather Records
Three months of bank statements, invoices sent and received, receipts. Digital or paper, doesn't matter.
Categorize Everything
Group similar transactions together. Income types, expense categories. Keep it simple but consistent.
Calculate Current Position
What's actually in the bank right now? What's owed to you? What do you owe others? Get the real numbers.
Identify Patterns
Look at the last quarter. What happens every month? What changes? Where does money consistently go?
Ready to Build Your Budget?
Once you've got your financial foundation sorted, you're actually ready to start working on cash flow management. The learning program walks you through building budgets that reflect your real business situation, not some generic template.
Guidance From Our Team
Hamish Blackwood
Cash Flow Specialist
The preparation phase isn't exciting, but it's where most people realize they've been flying blind. Getting your records straight before you start planning saves you from building forecasts on quicksand. Take the time now, and the actual budgeting becomes straightforward.
Pippa Lindenfield
Small Business Advisor
I've worked with hundreds of Queensland businesses, and the ones who succeed with budgeting all have one thing in common: they know their numbers before they walk in. You don't need fancy software or perfect systems. You just need honest records and a willingness to look at what's really happening with your money.