7 critical cash flow insights for your business

7 critical cash flow insights for your business
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7 critical cash flow insights for your businessEvery business needs to bring cash into the company as quickly and efficiently as possible. This enables the enterprise to have enough cash on hand to meet its obligations like payroll, rent and other expenses.
Beyond tracking the money coming in out of your business, there are other important reasons for business owners to ascertain the cash position of their business says Sui Ling Hui, Australian business coach at Cash Flow Kung Fu. In the three minute video she explains how cash flow statement can be a vital business tool for both reviewing the performance of a business as well as in forecast and strategic planning.
Ways cash flow statement can help with business review 
1. Reveal more information than the monthly ‘profit and loss’ statement – the ‘profit and loss’ doesn’t show the full picture about what happened with cash flow.
2. Show you where your business stands in terms of cash – a cash flow statement will reveal whether your business is chewing up more money that is being generated.
3. Help spot billing, collections, and payables systems failures – show what exactly is tying up your business’s cash.
4. Reveal ways your business could be more efficient in generating cash flow from day to day operations – allow you to streamline monthly expenses to reduce money going out.
Ways cash flow statement can help with forecast and planning for your business 
5. Assist with forecasting cash requirements for the business for achieving growth objectives.
6. Can help with coming up with a turnaround strategy – show you how much money and how long it will take to get your business back into good health eg: if you business will need loans to cover short-term cash flow problems.
7. Investors will insist on your cash flow statement as part of any financing proposal to get a more accurate view of the business’ performance
http://youtu.be/L2oGG2xgFY8

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