Farm Financial Tool: Cash Flow Budget Fact Sheet

How do I know if my business has adequate funds?

Maintaining strong control of the cash flow means planning (estimating) and monitoring the cash flow. Many farmers and banks would say cash flow is KING and that is why a cash flow budget is so important!

Key Points

• Cash flow is a financial ‘tool’ that tracks cash availability to the business, known as ‘Liquidity’.
• A positive cash flow is where more money comes into the business than goes out.
• Cash flow is a key measure to show banks whether the business can service its debt.