How Important Is

Cash Flow

Management?

Without cash, it is impossible for a business to

operate – can’t pay bills, can’t spend on operating

expenses, etc.

Profits are also meaningless if there is no cash

Cash Flow: the movement of cash going into and

out of a business

Cash flow accurately indicates the financial health

of the business

Cash flow can be either positive or negative

Negative cash flow – the business spent more than

what they receive

(vice versa for positive)

Negative cash flow can directly lead to a negative

cash balance

Negative cash flow = difficulties in

attracting investors, getting loans,

paying suppliers & staffs, etc.

Cash flow needs close monitoring, thorough

analysis, and immediate adjustments for a

business to avoid bankruptcy

Cash flow management should be at the top

of every business’s priority list

Cash flow management should be carefully

administrated by specified individuals

http://www.maverickmentoringforbusiness.com.au/contact/

Questions, Comments or Clarification?

Contact: Maverick Mentoring For Business

Email: peter@maverickmentoringforbusiness.com.au

Phone: 61 3 9005 8275