Managing Cash Flow in your Business - March 2018 Edition
Hello, Cash is the lifeblood of any small to mid-sized company, especially high-growth and/or highly leveraged ones. Still, many businesses struggle to maintain an accurate picture of current cash flow position and how that position will change in the future. Cash flow is a key indicator of financial health in your business. Without cash in your business, there is a good chance that your business will not survive. The Small Business Administration says that "inadequate cash reserves" are a top reason startups and growing businesses don't succeed. It's called "running out of money," and it will shut you down faster than anything else. A common misinterpretation i hear often is that Profit = Cash. Wrong! Profit does not equal cash. There are too many variables outside of Profit & Loss Statement (Income Statement) that can impact upon your cash flow. Variables such as taxation payments, purchase of capital equipment and loan repayments do not