Cash Flow Tracking Solutions

Cash Flow Tracking Solutions

How do you track cash flow?

Cash flow tracking solutions can be the difference between success and failure. Above all, happiness is a positive cash flow. By understanding exactly how much cash is in your business, you can track your business’s financial health. Similarly, sales and expenses, as well as capital investments, impact your bank balance. In other words, the route you take to assess company cash flow is likely to differ based on several factors.  For instance, the size of your business, industry, workforce size, and growth potential affect cashflow. In addition, innovative solutions to track company cash flow may help you manage this aspect of your business. Keith Tully, a partner at Real Business Rescue, talks about why keeping a close eye on company cash flow can prevent dangerous trading behavior.

Cash Flow Tracking Solutions in Cloud Bookkeeping and Accounting Software

There are numerous cloud accounting and bookkeeping software providers for small and medium enterprises, limited companies, and flexible workers. Depending on the platform that you choose to use, there are additional features that can help simplify the accounting journey, such as:

Cash Flow in Cloud Accounting: Mainstream cloud bookkeeping and accounting software products like QuickBooks Online, Sage 50cloud Accounting, Xero, and Zoho Books have cash flow reports. Tracking significant aspects of the business is built into these products, including invoicing, bank transactions, and credit cards.

Cash Flow products that extend accounting: Included cash flow reports in accounting products are simple. Therefore, sometimes you need or want more capabilities. For instance, cash flow products include CashFlowTool (Finagraph), Fathom, Futrli, Jirav, LivePlan (Palo Alto), and Spotlight Reporting.

Other Tracking Solutions in Cloud Bookkeeping and Accounting Software

Expenses Log: Track your allowable expenses on the go. By logging receipts and invoices digitally, you can save yourself valuable hours, reduce administrative paperwork, and speed up the process for your accountant.

Stopwatch: Many cloud accounting platforms offer a stopwatch or time tracking facility.  Therefore, you can time the number of hours worked and convert this into an invoice detailing billable hours, suitable for contractors, freelancers, and self-employed professionals.

Mileage tracking: Many cloud accounting platforms offer a mileage tracking facility. Therefore, you can track the miles driven and convert this into a billable transaction for invoices or expense reporting.

Credit Control: As part of your software subscription, you may be able to access credit control facilities to track upcoming payments, automate reminders, and flag outstanding invoices. By actively keeping tabs on the cash moving in and out of your business, you can protect company cash flow and encourage on-time payments.

By engineering technology into the accounting and bookkeeping journey, you can operate efficiently and reduce inaccuracies. Such software can allow you to store your financial data digitally and securely.  After that, transferring the data directly to your accountant or bookkeeper is easier.


Before cloud bookkeeping and accounting software, storing financial records in spreadsheets was a convenient and accessible way to keep track of company finances. Many business owners still do this. By regularly updating cash flow on excel spreadsheets, company directors could better budget company finances.

Accounting professionals typically produced master spreadsheets with integrated formulas. These spreadsheets helped to efficiently calculate whether the business was running up losses or generating profits, considering accruals and amounts owed. During an age where industry-standard accounting software was scarce and hard to come by, spreadsheets represented an efficient operating means.

Cash Flow Test for Insolvency

Suppose your business is showing signs of poor cash flow.  It is, therefore, unable to fulfill financial commitments, such as paying staff wages and replenishing stock. In that case, you may need to conduct a cash flow test for insolvency. This test functions as a financial health check on the business and can help indicate if your business is contingently insolvent. In addition to a cash flow test, you should seek specialist advice from a practitioner with insolvency experience. Rescuing a company is part art and part science.

Tracking company cash flow can help paint an accurate image of how your business is faring at any given time. By incorporating tools to understand company cash flow better, you can act pre-emptively. If your business is due to run out of cash and requires a cash injection, it is better to know as far in advance as possible. On the other hand, if your business exceeds expectations and is beating records, tracking such progress can help fuel company growth.

Looking for Solutions?

This short article was trying to expose you to cash flow tracking solutions. There are many more products to consider than those we have covered. We expect accounting professionals to assist their organizations and clients with cash flow issues. In conclusion, we know that both techniques and products can help maintain a positive cash flow. And isn’t that happiness?


Understand the latest in cloud accounting software, including cash flow, in our accounting software courses. Learn about cash flow here or attend CPE courses on accounting in small business accounting with add-ons or mid-market accounting.