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Every entrepreneur knows that cash flow is king. Cash is the lifeblood of any young company. Run out of that and your dream is dead.

What many don’t know is that cash controls are a MUST for keeping the cash flow circulating. Entrepreneurs leave this part until later, until the company is making “big bucks”, until the operations piece has settled down. Unfortunately, at that point, it may be too late. The leak may be so big that it’s sunk the ship. Or worse, the company may have attracted baddies that can do physical harm to owners.

What are cash controls? Is it the personnel heavy and time consuming Sarbanes-Oxley? Does it require a cracker jack financial person (such as myself)? Is it going to cost dollars you don’t have?

Not at first (only when you get big enough to warrant it, then well, you’ll have the cash and won’t get much sympathy from me).

In the case of a one person operation, cash controls can be as simple as ensuring that you have a secure mailbox, safely store financial information (including cancelled checks), reconcile your bank account at least monthly, deposit checks immediately… those sort of small controls that can make a big difference.

On Saturdays, I’ll be talking more about cash controls and other concepts for business owners. Some of the information may be outdated (‘cause I’ve been doing this for years and haven’t kept current with all Point-of-sales systems, etc), some may not be relevant for your business. Take what you need and discard the rest.