Understand Your Cash Flow Management

Every business runs on two prime things - the main one being strategy and the other being cash. It is said that well managed cash flow makes a company healthy and strong, whereas poor cash flow management leads to a cardiac arrest. If you haven't considered this an important issue, then this should be your wake up call, as they say, "now or never". Most people think that knowing what makes their cash flow sufficient avoids a major crisis. But ironically that's not true; in fact the solution lies in the accounting rules that govern the creation of financial statements. A very common problem is that though a company's income statement shows they made a large profit last year, they find they still don't have enough cash to pay all their bills. This means somewhere down View the rest of this article