A Useful Guide to Cash FlowAuthor: Richard Polom
A simple fact - more businesses fail for lack of cash flow than for lack of profit. This underlines the crucial importance of knowing where your cash is coming from, and where it is going to.
You may have heard the expression "cash is king". This is often used when talking about investment strategies and financial plans - meaning that having cash when others do not, puts you in a great negotiating position.
It is, however, a double-edged sword, as holding cash has advantages and disadvantages. The most important thing in cash flow management is to ensure you have enough cash and no more than is necessary:
This guide looks at why cash and cash flow is important, how to measure and manage it and where to look for good practice and good advice on cash flow management.
Upon completion you will be able to:
The Useful Guide will therefore:
About the Author
Richard Polom is an Interim Manager and Consultant with special expertise in: