Cashflow kit – making better financial decisions for your small business

Tracking and managing cash flow correctly is one of the biggest challenges that South Africa’s 2.6 million small and medium enterprise (SME) owners and entrepreneurs face.

“Entrepreneurs are passionate about their businesses and are laser-focused on this passion, but the reality is that most SME owners today are bogged down with endless financial admin,” explains Tom Stuart, chief marketing officer at Lula.

He says that tracking and managing cash flow is a major headache for business owners in South Africa. “Many of them end up spending an unnecessary amount of time on the administrative aspects of running a business.”

Responding to these challenges, Lula – a banking and funding provider dedicated to serving SA’s SMEs – has developed a toolkit aimed at helping small businesses understand and manage their cash flow. This kit is a comprehensive resource aimed at helping business owners make better financial decisions.

“We want to equip SMEs with the tools they need to simplify cash flow management. It means they can then focus their time and energy on the things that matter most to them, which is growing their businesses,” says Stuart.

The kit is tailored specifically for the local business context. It aims to provide an easy-to-understand guide, understandable even to people who are not trained in financial management.

“The intention with the cash flow kit is to give business owners the financial education and oversight they need to thrive. The first section demystifies cash flow concepts with easy-to-read summaries and handy infographics. Topics include the difference between cash flow and profit; the basic cash flow (inflow and outflow) cycle; and the crucial skill of cash flow forecasting. The more advanced topics covered include investing for growth and setting up financial safety nets for your business.”

The kit unpacks the benefits of Lula’s very own cash flow management tool that provides tailored insights of your business income, expenditure and cash flow forecasts: Lulaflow also allows you to link your other business bank accounts or accounting software to securely sync your transaction data, giving you a real-time view of your cash flow in one place.

“Lulaflow alerts small business owners to when payments are due and when cash flow is forecast to run low, so they can stay one step ahead. It provides a real-time bird’s-eye overview of a business’s cash flow situation and helps SMEs better manage their finances,” Stuart says.

“With continued economic uncertainty forecast for 2024, SA’s business landscape is increasingly pressurised. Sound cash flow management is like a financial lifeboat, helping SMEs stay afloat even in tough times,” he adds.

A business’ financial health is also a primary concern for potential investors, and having a healthy approach to cashflow can help attract them, especially in our current economic climate.

Download the Cash Flow Kit here.

Image credit: Freepik