Always evaluate your cash position before major decisions. This includes expansion, research and development, major purchases, or equipment upgrades. Utilize a bank reconciliation to check current cash available, pending outstanding payments and deposits in transit. The balance of your current cash account may materially change due to pending transactions.
Use a cash flow statement to project the cash your operations will bring in during the short term. This financial statement will distinguish what cash is a result of business, financing or investment opportunities. In addition, the statement tracks the change in your cash position from one period to the next.