Cash Flow
⚠️ Feature Coming Soon Cash flow reporting is currently in development and not yet available in DiverDash. This documentation describes the planned functionality that will be released in a future update. Stay tuned for announcements about when this feature will be available.
Cash flow analysis in DiverDash will help you monitor the movement of money in and out of your dive center. Understanding your cash flow patterns will be essential for managing daily operations, planning for growth, and ensuring financial stability.
What You'll Learn
How to generate and interpret cash flow statements
How to monitor daily cash flow patterns
How to identify cash flow trends and seasonal patterns
How to use cash flow data for business planning
Before You Start
Make sure you have:
Financial reporting permissions in DiverDash
Bank accounts properly set up and reconciled
Payment methods configured and mapped to accounts
Transaction data recorded for the period you want to analyze
Understanding of your business cycles and seasonal patterns
Understanding Cash Flow
What Cash Flow Analysis Shows
Cash flow analysis tracks:
Cash Inflows: Money coming into your business
Cash Outflows: Money going out of your business
Net Cash Flow: The difference between inflows and outflows
Cash Position: Your available cash at any point in time
Cash Flow Trends: Patterns over time
Types of Cash Flow Activities
Operating Activities:
Course enrollment payments
Equipment rental income
Retail sales revenue
Operating expense payments
Staff payroll
Facility costs
Investing Activities:
Equipment purchases
Facility improvements
Investment in new locations
Sale of business assets
Financing Activities:
Loan payments
Owner investments
Dividend payments
Credit line usage
Accessing Cash Flow Reports
Step 1: Navigate to Cash Flow Reports
Go to Finance > Reports in the main menu
Select Cash Flow or Cash Flow Statement
The cash flow reporting interface will open
Choose your analysis parameters
Step 2: Set Report Parameters
Date Range Selection:
Start Date: Beginning of the period to analyze
End Date: End of the period to analyze
Common Periods: Monthly, quarterly, yearly, or custom ranges
Account Selection:
Choose which bank accounts to include
Select all accounts for complete picture
Filter to specific accounts for focused analysis
Report Type:
Summary: High-level cash flow overview
Detailed: Transaction-level cash flow data
Comparative: Compare multiple periods
Generating Cash Flow Statements
Step 1: Create a Cash Flow Statement
Select Cash Flow Statement from the reports menu
Choose your date range (e.g., current month)
Select accounts to include
Click Generate Report
Review the generated statement
Step 2: Understanding Cash Flow Statement Components
Beginning Cash Balance:
Cash available at the start of the period
Should match ending balance from previous period
Includes all selected bank accounts
Operating Cash Flow:
Cash from day-to-day business operations
Course payments, rental income, retail sales
Operating expenses, payroll, facility costs
Net operating cash flow (inflows minus outflows)
Investing Cash Flow:
Cash used for or generated from investments
Equipment purchases, facility improvements
Sale of business assets
Net investing cash flow
Financing Cash Flow:
Cash from financing activities
Loan proceeds or payments
Owner investments or withdrawals
Net financing cash flow
Ending Cash Balance:
Cash available at the end of the period
Beginning balance plus net cash flow
Should match actual bank account balances
Step 3: Analyze Cash Flow Results
Positive Operating Cash Flow:
✅ Good sign - business generates cash from operations
Indicates sustainable business model
Provides cash for growth and investments
Negative Operating Cash Flow:
⚠️ Warning sign - business uses cash for operations
May indicate seasonal patterns or operational issues
Requires investigation and potential action
Overall Net Cash Flow:
Positive: Cash position improved during period
Negative: Cash position declined during period
Trend Analysis: Compare with previous periods
Daily Cash Flow Monitoring
Viewing Daily Cash Flow
Daily Cash Flow Report:
Go to Finance > Reports > Cash Flow
Select Daily Cash Flow option
Choose date range (e.g., last 30 days)
Generate report showing daily inflows and outflows
Daily Report Components:
Date: Each day in the selected period
Inflows: Total money received each day
Outflows: Total money spent each day
Net Flow: Daily net cash flow (inflows minus outflows)
Running Balance: Cumulative cash position
Identifying Daily Patterns
Strong Cash Flow Days:
High course enrollment days
Equipment rental peak periods
Retail sales spikes
Payment collection days
Weak Cash Flow Days:
Low activity periods
Large expense payment days
Seasonal downturns
Equipment maintenance periods
Weekly Patterns:
Weekend vs. weekday differences
Course schedule impacts
Dive trip payment patterns
Staff payroll timing
Cash Flow Trend Analysis
Monthly Cash Flow Trends
Generating Monthly Trends:
Select Monthly Cash Flow report
Choose a 12-month period
Generate report showing monthly patterns
Look for seasonal trends and growth patterns
Seasonal Patterns for Dive Centers:
Peak Season: Higher inflows during diving season
Off Season: Lower inflows, maintenance expenses
Holiday Periods: Variable patterns depending on location
Weather Impact: Seasonal weather affecting dive activities
Year-over-Year Comparison
Comparing Annual Performance:
Generate cash flow reports for current and previous years
Compare same periods (e.g., Q1 2024 vs Q1 2023)
Identify growth trends or declining patterns
Analyze factors contributing to changes
Key Metrics to Compare:
Total operating cash flow
Average monthly cash flow
Peak and low cash flow periods
Cash flow volatility
Cash Flow Forecasting
Short-Term Cash Flow Forecasting
Weekly Forecasting:
Review upcoming course enrollments
Anticipate equipment rental bookings
Plan for scheduled expense payments
Monitor accounts receivable collections
Monthly Forecasting:
Project course enrollment revenue
Estimate equipment rental income
Plan major expense payments
Consider seasonal factors
Long-Term Cash Flow Planning
Quarterly Planning:
Analyze seasonal patterns
Plan for equipment purchases
Budget for facility improvements
Prepare for slow periods
Annual Planning:
Set cash flow targets
Plan major investments
Prepare for seasonal variations
Establish cash reserves
Cash Flow Management Strategies
Improving Cash Inflows
Accelerate Receivables:
Encourage advance course payments
Offer early payment discounts
Implement efficient billing processes
Follow up on overdue accounts
Optimize Pricing:
Review course and rental pricing
Implement dynamic pricing for peak periods
Bundle services for higher value
Offer payment plans to increase accessibility
Diversify Revenue:
Add complementary services
Develop retail product lines
Create membership programs
Offer corporate training packages
Managing Cash Outflows
Optimize Payment Timing:
Negotiate payment terms with suppliers
Time large purchases strategically
Take advantage of early payment discounts
Spread major expenses across periods
Control Operating Expenses:
Review recurring expenses regularly
Negotiate better rates with vendors
Eliminate unnecessary expenses
Implement cost control measures
Plan Capital Expenditures:
Time equipment purchases strategically
Consider leasing vs. purchasing
Plan facility improvements during slow periods
Coordinate major expenses
Cash Flow Alerts and Monitoring
Setting Up Cash Flow Alerts
Low Cash Balance Alerts:
Set minimum cash balance thresholds
Receive notifications when approaching limits
Plan corrective actions in advance
Maintain adequate cash reserves
Negative Cash Flow Alerts:
Monitor for consecutive negative cash flow days
Identify unusual spending patterns
Track large unexpected expenses
Alert management to potential issues
Regular Cash Flow Reviews
Daily Monitoring:
Check cash balances each morning
Review previous day's cash flow
Monitor large transactions
Identify any unusual activity
Weekly Reviews:
Analyze week's cash flow patterns
Compare to previous weeks
Review upcoming cash needs
Adjust short-term plans as needed
Monthly Analysis:
Generate comprehensive cash flow reports
Compare to budget and forecasts
Identify trends and patterns
Plan for following month
Troubleshooting Cash Flow Issues
Negative Cash Flow
Problem: Consistent negative cash flow
Potential Causes:
Seasonal business downturn
Increased competition
Rising operating costs
Poor collection practices
Solutions:
Analyze specific causes of negative flow
Implement cost reduction measures
Improve collection processes
Develop additional revenue streams
Consider short-term financing if needed
Cash Flow Volatility
Problem: Highly variable cash flow
Potential Causes:
Seasonal business patterns
Irregular large transactions
Inconsistent marketing efforts
Weather-dependent operations
Solutions:
Develop more predictable revenue streams
Create membership or subscription programs
Diversify service offerings
Build cash reserves for volatile periods
Inaccurate Cash Flow Data
Problem: Cash flow reports don't match expectations
Potential Causes:
Unreconciled bank accounts
Missing transaction records
Incorrect account mappings
Timing differences
Solutions:
Ensure all bank accounts are reconciled
Verify all transactions are recorded
Check payment method mappings
Review transaction dates and timing
Integration with Business Planning
Budget vs. Actual Analysis
Comparing Cash Flow to Budget:
Generate actual cash flow reports
Compare to budgeted cash flow
Identify significant variances
Analyze causes of differences
Adjust future budgets based on learnings
Growth Planning
Using Cash Flow for Growth Decisions:
Determine cash available for expansion
Plan timing of growth investments
Assess cash flow impact of new services
Evaluate financing needs for growth
Risk Management
Cash Flow Risk Assessment:
Identify cash flow vulnerabilities
Plan for worst-case scenarios
Establish emergency cash reserves
Develop contingency plans
Next Steps
After analyzing your cash flow:
Review Financial Reports for complete financial picture
Perform Bank Reconciliation to ensure data accuracy
Optimize Payment Processing to improve cash inflows
Manage Expenses to control cash outflows
Need Help?
Cash flow reports showing unexpected results? Check bank reconciliation and transaction recording
Need help interpreting cash flow patterns? Review seasonal business factors and compare to industry benchmarks
Cash flow forecasting challenges? Consider consulting with a financial advisor or accountant
System not capturing all cash flows? Verify payment method mappings and account setup
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