Your cash flow plan from ThinkOut is now divided into specific cash flow activities in order to be easier for you to understand your company from a financial perspective. You can either choose to check your whole cash flow or by each separated activity (operating, financing, investing).
Your category structure is organised based on these types of activities as well. Therefore, all transactions and predictions can be associated with a specific cash flow activity, based on the category you are choosing.
Include here all inflows and outflows generated from your daily operational activity, from selling your products or services. Some examples here include the sales and the payments to rent, suppliers, salaries, etc.
The operating cash flow will give you more information about your business capability, whether it is profitable and can grow internally or needs some external support.
This section of your cash flow will usually contains long term investments made by the company. Add here all investments in assets you might have, such as equipment, land, buildings or any income coming from selling those assets.
For example, let's say you are thinking of changing the laptops for your team or you're selling your company cars. In the first case, making such a big acquisition is negatively influencing your current cash flow, but this is a long term investment that you would want to emphasise separately. Also, selling a company car is an income for your business, but it's not money coming directly from selling your products or services - unless you are a car dealer.
The investing cash flow reflects how much is your company willing to invest in its future.
This section will give you more details about how much is your company dependant on external financing.
Include here any bank loan that you might take to avoid a cash flow crisis or the dividends paid to shareholders.
Careful monitor this section of your cash flow and make sure that you are not suffocating your company with too many loans.
Cash flow activities indicators
Have a good understanding of your company's money by using cash flow activities. Use your Dashboard and Cash flow sections from ThinkOut and check each activity separately. Monitor your cash flow indicators' evolution over time and take informed business decisions based on the most actual data source, your bank transactions.
Check your category structure and learn how to edit it in order to reflect your business needs. As mentioned above, each category is automatically assigned to one of the three cash flow activities. You'll find more information in your account.
And don't forget, if you need help with you data categorisation, do not hesitate to contact us over our chat (the red circle in the right corner) or drop us a line at firstname.lastname@example.org.