Video: Five steps to effective cash management

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.

For more information on charity finance, check out some of our articles.

• Charities need to focus on income diversity
• How to plan a more stable financial future

And check out some of our previous video by clicking on the below:

• Five fundamentals to managing your NPO finances
• Three area of cost budgeting
• Five key stages of income budgeting

And check out Sage OFL below for some essential financial resources.