Cash flow is a management process, not a finance report. Use this checklist to confirm the building blocks of real control are in place, not just the building blocks of reporting.
The eight essentials of control
1
A forward view, not just a bank balance
A rolling forecast looks ahead. The bank balance only tells you where you have been.
2
Opening, movement, closing
Every period shows where cash starts, what moves it, and where it ends.
3
Every cash flow mapped
Operating, financing and investing, inflows and outflows, are all captured, not just the obvious ones.
4
A named owner for each input
Each number has someone responsible for keeping it current and correct.
5
A fixed review rhythm
Cash is reviewed on a set cadence as part of management routine, not only when a problem appears.
6
Forecast compared to actual
The plan is measured against reality and the gaps are understood and explained.
7
A defined minimum cash line
A buffer is set, and cash projected to fall below it raises an early alert.
8
Decisions with follow through
Every review ends in actions, owners and due dates, and they are tracked to completion.
The Bottom Line
If all eight are in place, you have control. If any are missing, you have a report that describes the past, not a system that protects the future.
The information in this document is for educational purposes only, based on FinPro's experience. It does not constitute financial, legal, or tax advice. Please consult a qualified professional before making decisions.