Cash Flow Management

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Cash Flow Management – What is it? Why do we need it?

What is Cash Flow?

Cash flow is the total amount of money being transferred into and out of a business over a determined period of time.

Cash flow is the excess of cash flowing into the business over cash flowing out.
The importance of strong cash flow is stated in the common expression “cash is king.”images (2)

Cash flow is distinct from a cash position. Having cash on hand is critical, but cash flow indicates an ongoing ability to generate and use cash.

Why do we need cash flow?

If a business is a car than cash flow is the fuel for your car … makes the car move.

Why do we need to manage the cash flow? Well, it is easy to understand, if you want to go somewhere with your car you need gas.

In other words, if you have gas then you are able to use the car and go anywhere you want to go.

So it is utmost important to have the fuel needed, to have the needed cash flow.

The cash is determinant for any movement that you need to / want to do with business.

Cash flow is one of the most important topics that requires absolute attention.

Imagine that cash flow/liquidity is like toilet paper, you’re in deep s…t if you don’t have it when needed.

The most important aspects that you have to handle when taking care of cash flow are  :

At TopCFO we have the knowledge and experience to handle all the challenging topics to improve your cash flow. The fun part is that when you handle your cash flow properly you can have immediate results in the form of available cash. download

So let us help you be the KING because cash is KING.

If you want to find out more about the TopCFO way in handling the cash flow get in contact with us.

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