Cash flow is the pulse of your business. Whether you’re paying royalties, ordering inventory, or managing payroll, staying on top of inflows and outflows is critical. Yet, many franchises rely on outdated spreadsheets or reactive tracking, leading to unnecessary financial pressure.
Why It Matters
Positive cash flow isn’t just about profitability—it’s about having money available when it matters most. With strong cash flow systems, franchises can reinvest, cover shortfalls, and prepare for seasonal dips.
Benefits for Franchisors:
- Gain greater clarity with better financial tools
- Reduce the risk of inaccurate royalty calculations
- Enhance insight into overall network financial health
Benefits for Franchisees:
- Avoid stress and cash crunches, especially around BAS time
- Plan for staffing, marketing, and growth confidently
- Maintain a buffer for emergencies or opportunities
Tools That Help:
- Float: Integrates with Xero or QuickBooks to provide dynamic, real-time cash flow forecasting.
- Futrli: Offers scenario planning and cash flow projections with visual dashboards.
- Square: POS, CRM, and payments in one, ideal for retail and quick-service food businesses.
Example: A hair salon franchise uses Float to forecast cash flow during the post-Christmas lull. By anticipating the downturn, they can delay non-essential purchases and adjust staff shifts proactively.
