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CASH FLOW CRUNCH?

April 9, 2012 5:44 pm Published by Leave your thoughts

Cash flow is always an important element in the smooth and successful operation of your business.  Keeping track of your revenue and expenses, as well as all operating costs, is essential to project how much cash it needs daily to maintain and grow your business.

Generating sales and managing operations are also important, but ensuring that that cash from those sales is collected and that your company’s daily cash flow needs are managed efficiently and effectively is even more important. And this is particularly true when the economy goes into a slump. Your business’s resources can be stretched to the max and you may find yourself scrambling to keep up with your own accounts payable, let alone worrying about your receivables.

Proper planning is paramount to better avoid a serious cash crunch in the future.

As one step in that planning, it’s wise to diagnose your company’s cash flow health and overcome any weaknesses that could create problems down the line.

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