How to manage your Cash Flow in Your Business
How to manage Cash Flow in Your Business It is often said that in any business "cash is king". I am sure that someone reading this article would have come to this realization painfully when you have assets worth millions but don't have enough money to buy fuel to power the generator. This article aims to give you a working definition of cash flow, show how to prepare a cash flow forecast, increase inflows, how to delay and if possible reduce outflows. What is the cash flow? In simple terms, cash flow is the movement of cash in and out of a business. It tells the story of how money is entering and leaving your business. If more money is entering than is leaving we say you have a positive cash flow. If on the other hand, more money is leaving than is entering we would say you have a negative cash flow. Positive cash flow is the name of the game. Take note that profit on paper is not the same thing as cash in the business. Profit only becomes valuable when it ...