The Importance of Cash Flow Management to a Business's Success

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

Questions, Comments or Clarification?

Contact: Maverick Mentoring For Business

Email: [email protected]

Phone: 61 3 9005 8275