Importance of Cash Flow!
Maintaining healthy cash flow is vital to the survival of any business, especially during the current economic conditions. A company’s cash flow position is dependent on its inflows and outflows. Negative cash flow situation may cause a business to shut down if it is unable to meet its working capital needs. Positive cash flow will leave you with cash on hand to take care of payroll & other business finances. Planning accordingly will let you know exactly which times of the month you can expect money to be deposited or withdrawn. If the risk of cash flow deficit is increasing for your business. You should start considering options you may have to strengthen your cash flow position including applying for a loan from a banking institution or individual, applying for a line of credit from a bank, speeding up the collection process, financing the purchase of equipment through leasing or loans rather than paying cash up front, start liquidating assets so you will have more cash on hand, delaying payments to vendors by negotiating terms with them so that you manage their expectations accordingly. Need to understand what’s your cash flow position today? Please feel free to reach out. We would love to help! #Cashflow #Accounting #Business