Cash flow management means following the cash coming in and out of your business. It’s a process of tracking that flow and analysing the changes.
This is crucial for the overall health of your business to ensure there is enough cash to keep things running smoothly. Cash flow management helps you spot trends, prepare for the future and deal with any problems before they can affect your business.
By tracking your cash flow, you’ll understand how much cash your business needs to operate including paying suppliers and employees.
Managing your cash flow effectively allows you to make future growth plans for your business based on current resources available. You’ll have better insight into performance and you’ll be able to take advantage of new opportunities quicker and invest surplus cash back into the business to make it more profitable.