How to improve cash flow

Cash flow is keeping an eye on the money being taken in and out of a business.

Cash inflows is the money being put into the business, for example people buying a product from that business. Cash outflows is the money a business has to spend for taxes, rent and wages.

Businesses have to keep an eye on their cash flow because if they don't you wont realise if you are not getting enough people buying your products or if you are still spending to much on supplies even if you're not making a lot of profit and they will go bust.

The benefits of cash flow to a business is that they can sort out any money owed to people quicker and can sort it out before it effects their whole business.

A famous example of a business that didn't keep an eye on their cash flow and went bust is Blockbusters Video.

Comment Stream

3 years ago

Great start!