10 Tips for Managing Cash Flow in Your Business
As the name suggests, cash flow is the amount of cash flowing in and out of your company. It’s an important tool for diagnosing a business’s financial health.
Positive cash flow is when the money flowing into your business from sales, accounts receivable, etc. is more than the amount leaving through accounts payable, wages, and other expenses, while a negative cash flow means your outflow is greater than your incoming cash. This usually means trouble for any business.
If you’re wondering how to handle cash in a small business, here are some cash flow management strategies to make sure you stay in the positive zone.