As Aaron Stokes says, cash flow is the lifeblood of any business. Properly managing the cash in your shop and building a reserve is key to giving your operations some room for error.

When managing your cash flow, Stokes says that discipline and emotional management is key, especially if you’re a newer shop owner. He goes over the keys for a shop owner to manage his or her back office operations, and get the rest of the team on board with the plan.

0:56: The importance of cash flow

2:15: Difference between cash flow and a profit and loss statement

8:40: How to keep track of cash flow and accrual

13:08: Getting your team on board with the system

15:58 The importance of being disciplined with your cash