When money is tight, you need to know where every penny is going, and how many pennies you have left to spend. This can get incredibly difficult when your are dealing with multiple vendors, tracking shipments and payments, outsourcing work, and trying to collect new customers. Missing a payment deadline because of internal financial disorganization is never a good look, no matter how new your company is.
The only way to track this status is to set up a cash flow system that is easy to update and scalable
. You want a tracking system that works as well for you with 10 customers as with 100,000, so thinking about efficiency from day 1 is a must.
Establishing an effective cash flow system will also bring compound benefits because investors and seed backs will like your business model better if you can show consistent cash flow.