e-lifeandwork: Learn New Skills Online | Online Courses & Real-World

As a small business owner, you often wear many hats when first launching your company, including that of chief financial officer. At the root of controlling your business’s finances, you need to understand how cash flows in and out daily, weekly and monthly.  While managing your business’s finances entails much more than understanding your cash flow, it’s a great place to start assessing your business’s financial standings. Read on to learn about cash flow, including the seven most common cash flow problems small businesses experience and how best to solve them. What is cash flow? Cash flow refers to the intake and output of money within a business. It encompasses all the revenues and expenses of a company at a given moment in time. Cash flow management is planning your inflows and outflows accordingly to ensure your business always has cash reserves. The best accounting software can help business owners keep track of their cash flow and other financial metrics. [Learn mor...

The pandemic has changed a lot of things, including the way many of us think about work. People are leaving their jobs in droves, but where are they going? And can you go there too? If you have a side hustle--a hobby or gig you do outside the hours of your full-time job--maybe it’s time to think about turning that into your primary source of revenue. Here’s what you can learn from people who’ve turned their side hustle into a small business. Do What You Love A side hustle is often a way to engage your passion for something that’s different from your “day job.” According to The Hiscox Side Hustle to Small Business™ study, most side hustlers started their side gig to follow a passion, and a majority did so in a different industry from the one they last worked in.  Kat Carney of Swell & Stone always wanted to be a photographer, but it was only a side hustle for several  years. When she decided to make it her full-time job, she began shooting traditional weddings bu...

Cash flow is the movement of money in and out of your business and your business bank account. Think of cash flow like your car’s gas tank. You fill up the tank with gas, and it empties as you drive. The goal, however, is to have enough gas in your tank so that you never run on empty. In the same way, cash flow is the movement of cash in and out of your business account. Cash inflows are your sources of income. Cash outflows are your business expenses. Naturally, positive cash flow is better than negative cash flow. Why being cash flow positive is important to your business Positive cash flow should be the goal for all small business owners. You want to generate more money than you’re spending. That sounds simple, but plenty of profitable businesses run into cash flow problems. It can be challenging to balance regular business expenses—salaries, rent, technology updates, etc.—with things less under your control. Think sporadic revenue and periods of negative...