How important is cash flow management for a company?
Posted: Wed Jan 22, 2025 10:05 am
Without accurate cash flow management, the person responsible for the business's accounts may have a mistaken view of what happens to the money that comes in and goes out every day, with each new transaction, whether it is a new sale made or an amount paid. As a result, a series of mistakes can occur.
A very common mistake is to think that there is money left over in the face of norway phone number list sudden increase in sales , without, however, looking at the other side and considering the due date of upcoming commitments. Therefore, cash flow control is important as it provides a series of valuable information for the proper financial management of the company, ensuring financial health and the continuity of activities.
With this, cash flow provides a basis for a correct analysis of the company's financial situation and facilitates all proposed planning, which necessarily involves knowing the revenue obtained and the bills to be paid, among other components of any company's budget.
A very common mistake is to think that there is money left over in the face of norway phone number list sudden increase in sales , without, however, looking at the other side and considering the due date of upcoming commitments. Therefore, cash flow control is important as it provides a series of valuable information for the proper financial management of the company, ensuring financial health and the continuity of activities.
With this, cash flow provides a basis for a correct analysis of the company's financial situation and facilitates all proposed planning, which necessarily involves knowing the revenue obtained and the bills to be paid, among other components of any company's budget.