Accounting
Cash Flow Under Control: 5 Numbers Every Entrepreneur Must Track
· 3 min read
A profitable business can go under due to a lack of cash. Learn how to track five key indicators that will signal impending trouble well in advance.
Operating Cash Flow and Days Sales Outstanding (DSO)
Track how much cash actually flows in from daily operations and the average time it takes for your customers to pay. Extending payment terms by just two weeks can completely drain the working capital of a growing business.
Tax and Social Contribution Reserves
Money set aside for VAT (DPH), income tax prepayments, and statutory social and health insurance contributions does not belong to you. We recommend keeping these funds in a separate bank account – clients who follow this rule practically never run into trouble with the Finanční úřad (Czech Tax Office).
Monthly Reports Instead of an Annual Surprise
Closing the books once a year is useless for steering a business. A monthly profit and loss statement alongside an overview of liabilities gives you the time to react while you still have room to manoeuvre.
Author: FinTaxo expert team
Operated by: Zaklipso s.r.o.
Czech original: read this article in Czech
This article is general information and does not replace individual tax, accounting or legal advice. Czech legislation changes frequently — verify the current wording or discuss your situation with us before acting on it.
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