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3 Cash Flow Graphs Every Business Should Use

Using cash flow graphs is a quick and powerful way to really get an accurate picture of the flow of cash in and out of your business. Whether you want to delve into highly granular, detailed information or more of a bird’s eye view of your cash position, cash flow graphs can help you understand what’s going on with your business’s cash at a glance.

According to a study by the Social Science Research Network, 65% of us humans are visual learners. And, let’s be honest, the other 35% are completely ok with a simple, easy-to-understand graph to help them guide their business decisions too. Which is why business owners just love a cash flow graph.

So, what are the 3 cash flow graphs every good business owner should be using? Let’s find out…

1. Cash flow forecast graph

Ok, let’s start with the big one. Forecasting your cash is essential for any business, no matter the shape or size. A solid cash flow forecast is like a crystal ball and by gazing into it you can see your future bank balance and make the right decisions to keep your business cash flow healthy.

If you’re still using spreadsheets to work out your cash flow, chances are you’ve never experienced the pleasure of viewing your forecast beautifully laid out in a simple, but effective, cash flow graph. (Side note: spreadsheets are so 1995.)

Here at Float, we know how important it is to be able to see clearly the fluctuations in your cash flow presented in a highly visual way. So, as well as helping you forecast, Float creates cash flow graphs based on real time financial data from your connected accounting platform (Xero, QuickBooks Online or FreeAgent, to be exact).

Not only does it look kind of swish, but it also helps you spot in advance the times when your cash flow may be taking a dip, so you can take preemptive measures quick-smart.

In Float you can get daily or weekly cash flow graphs, to keep you in the know and keep any cash-related anxiety at bay.

2. Budget vs actuals graph

Successful cash flow planning depends on understanding where you went over or under budget previously. Step in – the budget vs actuals graph. This type of cash flow graph tracks your actual outgoings against your planned budgets, and delivers the information in a wonderfully visual format. You can spot overspending before it becomes an issue – without spending hours number crunching in a spreadsheet!

3. Scenario planning graph

Last but far from least is a scenario planning graph. Scenario planning helps you model hypothetical situations so you can see the impact they would have on your business’s cash flow. You can use scenarios to plan for everything from seasonal cash fluctuations to hiring new staff. Not only does creating a scenario give you a lovely new graph to scrutinise, you can also layer the scenarios and download them all onto one graph for comparisons.

In Float you can export and share your cash flow graphs as a PDF, PNG or CSV file, which is particularly handy if you need to share the information with an important bigwig or use it in a financial report. Or maybe you just want to show off how healthy your cash flow is looking, that’s fine too.

Ultimately all of the above cash flow graphs will help you carry out better data analysis and gain a better understanding of your cash flow. Cash flow visualisation never looked so good.

Let’s get visual, with a 14-day free trial of Float cash flow forecasting software.

Louise Bayley-Boyd

Content Manager and digital enthusiast, fuelled by coffee and horror films.