“Cash is King” – and truly, a healthy cash flow is a vital part of any successful business. Net income doesn’t pay the bills and neither do the assets or equity in your business. Only cash pays the bills. Cash flow planning needs to be part of every business owners’ strategic business plan
Without a doubt, proper cash flow management in your business is critical to its growth and longevity. Understanding basic cash flow principles is the first step in effectively managing your cash flow.
Cash flow is more than just a fancy term. In its simplest form, cash flow is the movement of money in and out of your business. It can be described as the process in which your business uses cash to generate goods or services for sale to your customers, then collects that cash from each sale and completes the cycle all over again.
