For businesses, cash flow management is a very important aspect of your daily operations. A good cash flow can help ensure salaries are paid on time, and that there are also funds for growth and expansion of the business. Cash flow management can also ensure that there are resources available for paying vendor bills and taxes on time.
Essentially, one of the key points to managing cash flow is to ensure that cash comes in faster than it goes out. Some examples of how this can be achieved includes requesting for a down payment on services or requesting frequent earlier payments instead of scheduled long-term payments.
The main difference between cash flow and profit is that while profit denotes an amount of money left over after all expenses have been paid, cash flow indicates the net flow of cash into and out of a business. Ask our Maroochydore financial advisors how we can assist you in cash flow management.