Cash flow management is a critical part of running an effective small businesses. The first step to taking control of your cash flow is to get a clear picture of your cash situation, and understand how it changes from week to week, month to month, and quarter to quarter.
Benefits of good cash flow management include:
- Make sure your business doesn’t ever run out of cash.
- Foresee cash flow problems long before they arrive.
- Plan for seasonality and periods where you expect to have cash flow issues.
- Build and improve relationships with vendors.
The bottom line is that every small business should have a clear view of their cash flow picture. So how do you get this view?
Aaron Dyer at Dyer Consulting Group recently wrote an article on this topic:
Closing the Gap: Effective Cash Flow Management Practices for Small Business
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