When cash is king

摘要

Cash flow management is a common challenge for most businesses, and cashflow problems can befall even the most profitable companies. Most businesses have to deliver goods or services to customers before being paid, and it is essential to always have enough cash available to pay staff and suppliers before receiving customer payments. Always distinguish between cashflow and profitability, as you can turn a good profit for the year and still be strapped for cash. It's important to reduce the time between expenditure and receipt of income, to ensure you can always pay for day-to-day business costs.