Identify Ways to Improve Cash Flow
Cash flow refers to the flow of cash into and out of a business over a period of time. Watching the cash inflows and outflows is one of the major management tasks of an owner. The outflow of cash is measured by such things as checks written every month to pay salaries, suppliers, and creditors. The inflows are the cash received from customers, lenders, and investors.
Improving cash flow will put the business in a stronger cash position to support business activities and future growth opportunities.
To improve cash flow, review different funding options for the business, assess whether the sales leads-to-cash received cycle could be improved, take steps to better manage the supply chain and then implement a monitoring system to ensure proper management of these initiatives.
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