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When Businesses expect a period of Low Cash Flow

By Erik Zimerman On May 16, 2017 · Add Comment · In The Whiskey Room

As many an experienced businessman knows, being great at what you do is only part of managing a successful business. From successful marketing to human resource management, there is a lot required for your success. Perhaps nothing is as fundamental however, as proper cash flow management. Many otherwise successful businesses fail because of a failure in cash flow management. Small and medium businesses can often find themselves fully occupied, selling their goods or services at a profitable margin, with their owners working hard day in and day out happy to see so much profitable activity, only to find themselves unable to pay basic expenses at the end of the month; and then descending into a death spiral as cash becomes less and less available. Proper accounting, administration and long-term cash flow management are incredible important, and necessary to match up income streams with expenses (who often have very different cycles and schedules), but also to be able to recognize what is and is not working in the company. Very often orderly analysis of the numbers will reveal very different profitability or even loss of different parts of the business than what one would expect. When we do accounting, and cash [...]

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When Businesses expect a period of Low Cash Flow

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