In this coming days, I will share on topics related to cash flow management & cashflow budgeting.

Cash Flow Management -> It is a process that tracks how much money is coming into and going out of your business

Importance;

1. Helps to predict how much money is available in your business for (near) future use.
2. Helps to identify how much money your business will need for payments such as paying staff, suppliers or loan instalments. Ensure on time payments, especially for staff costs.
3. Order fulfilment / Planning – some suppliers (new) needed deposits/full payment before delivery.
4. Helps to spot trends – create solutions for gaps (Deficit) or look for potential investments (surplus) – always be prepared

Note:

1. You have always heard that “Cash is KING”, coz without money; you cant pay your supplier & if you cant pay your supplier, you will have no product to sell.
2. FYI, business expansion NEEDS A LOT of cash, similar to Note 1 above. Your supplier/service provider will only get things moving when they receive payments.
3. The Negative impact on cash flow issue:
   1. Reduced profits – your regular supplier decided not to sell to you; force you to look for alternative (often more expensive) suppliers
   1. Salary delays – low employee motivation, low sales (as your employees doent have the motivation to push for you), ultimately distrupts daily operation.
   1. Business can’t grow