How Important Is
Cash Flow
Management?
Without cash, it is impossible for a business to
operate – can’t pay bills, can’t spend on operating
expenses, etc.
Profits are also meaningless if there is no cash
Cash Flow: the movement of cash going into and
out of a business
Cash flow accurately indicates the financial health
of the business
Cash flow can be either positive or negative
Negative cash flow – the business spent more than
what they receive
(vice versa for positive)
Negative cash flow can directly lead to a negative
cash balance
Negative cash flow = difficulties in
attracting investors, getting loans,
paying suppliers & staffs, etc.
Cash flow needs close monitoring, thorough
analysis, and immediate adjustments for a
business to avoid bankruptcy
Cash flow management should be at the top
of every business’s priority list
Cash flow management should be carefully
administrated by specified individuals
Questions, Comments or Clarification?
Contact: Maverick Mentoring For Business
Email: peter@maverickmentoringforbusiness.com.au
Phone: 61 3 9005 8275