Week 8 - Key fundamentals of financial intelligence & Week 9 - Cashflows

Week 8

In this unit we share with you some ideas around what you should be recording, watching and tweaking in your business financials. No OSTRICHING ANY MORE people - time to get your heads out of the sand and take responsibility for your business finances and stop saying shit like 'oh but the accountant looks at that' or 'it's all too hard cos I am no good at numbers' If you are a busness owner - stiff shit - you MUST know this stuff. Time to get your heads around it NOW!

Week 9

Working through the 3 types of Cashflow


Click here to download the 3 Types of Cashflow


Operating Cashflow (OCF)

Working Capital - you’re everyday funds.  This is made up of the difference between your Current Assets & Current Liabilities.  Current Assets is Eg Cash, Stock & Debtors.

Current Liabilities are your creditors.  Profit is the difference between your Revenue and Costs.  Costs are your wages, op ex, COGS ect.


Understanding your operating cash flow is the most important part of your money/cash control.  Follow the numbers 1-4 in investigating each part of your operating cashflow. 

Always do everything possible to control cash issues in your OCF.  


If you need support of OCF you the go to; 


Financing Cashflow (FCF)

Debt Financing - consists of overdrafts, loans, funding from banks.  Equity Finance - consists of Directors loans, tipping in your own cash.


If you’re confident in your business model and the sustainability then you’ll seek support from FCF. 

Always being mindful that if you have too much debt you will find OCF very difficult with large repayments and not paying down FCF.


Another option you can then look to is;


Investment Cashflow (ICF)

Capital Expenditure consists of Plant, Property & Equipment.  Is there the possibility to sell off ICF to fund OCF.  

Being careful that what is sold does not significantly impact the ability to generate required amounts of revenue. 

If you have a strong understanding of your Cashflow you will have the ability to make strong business decisions on facts/numbers rather than a gut feeling.