For businesses, having a healthy cash flow is vital for your daily operations. Monitoring your level of income and expenditure can ensure you pay your obligations on time. This includes your salaries, debts and taxes. Any residual income can then be used to help further expand your business.
Debt isn’t necessarily always bad. Having ‘good debt’ means you are utilising it to invest in assets that can generate additional income for you over time. ‘Bad debt’ occurs when it begins to affect your financial health and starts to limit your life.