Cash Budget - so do the

To make a cash flow budget
A cash flow budget will show you how much money you have in your business now and at various points in the future so you can plan for the weakness in the company's finances long before they occur.
As a self-employed are often cash flow in the head. You know, when VAT is paid and when taxes are to be submitted. You know how much money you can invest in different things as the economy is as yet very easy to grasp. As the business grows, it may be necessary to still make a cash budget to keep track of how money moves in your company so you are not left without money when a bill is due.

Concrete example:
You bill the customer for a job done on 21 March and has 30-day payment terms to customers. This means you will get paid for work on 20 April and it affects your cash flow forecast for April in a positive way. The material for the job you performed your supplier invoices, 3 March, 30-day payment terms. This means you must pay your bill on April 3rd and then 18 days left until you get paid from your end customer. This will affect your cash negative during most of April because you are out of money during 18 days of you receiving payments from your end customer. Are you in?

Here's what you do.

Look through your financial results which you see the cost advantages over the twelve months.
Make a negative prognosis for the money that will come in the twelve months
Put the costs you know to the income you know about the period.
Evaluate. Are there valleys of liquidity on the road? How can you, if so, to avoid them? Can you increase revenue, using an overdraft facility, take a temporary loans or allocate costs in any other way?

When you do this, you have a big enough control over the liquidity of your business and it will help you sleep better. When your company becomes bigger, so does the demands for a more detailed cash flow budget bigger.