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Why is cash-flow management necessary for a #business?

SlickAccountSlickAccount subscriber Posts: 11 Bronze Level Member
We think cash flow management is quite important as it helps a business owner to keep a real-time track on every cash flow also it helps to do a project and planning for effective business growth. 

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    saravanansaravanan subscriber Posts: 389 Silver Level Member
    Cash flow is essential for the healthy growth of any business. Making sales and delivering your products or services to the customers is great, but it doesn’t amount to much if you don’t have money on hand when you need it.
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    EntreflowEntreflow subscriber Posts: 15 Bronze Level Member
    Cash is king. Your cash flow will help you stay in business.

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    Jessie HookieJessie Hookie subscriber Posts: 351 Silver Level Member

    A company or a business entity needs cash to meet its everyday operating expenses, asset purchase, marketing expenses etc. Sometimes, an unplanned cash flow management strategies lead to business failure. Cash-flow can be of two types both positive cash-flow and negative cash-flow. Positive cash-flow shows that the company has the cash to meet its obligations, which attracts investors but negative cash-flow shows the company has less cash to meet its daily obligations.

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    KalenamKalenam subscriber Posts: 19 Bronze Level Member

    It's just amazingly important to take care of your income and expenses no matter if we are talking about a company or an individual because if you don't pay close attention to it, you should be really lucky not to go bankrupt. And I know what I am talking about because I went through that. My first business started rapidly and I thought that it will go on forever but I didn't even realise how revenue halved at some point because I wasn't smart enough to track cash-flow properly so I ended up googling #1 on yelp for bankruptcy lawyer san diego which was a huge experience for me and it changed me completely. Now I am trying to spot even the smallest problems to solve them as fast as possible and this kind of approach pays off.

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