23 Apr Is Cash Flow King? Understanding ‘where’ a small businesses money ‘is’ is obviously an important piece of
Is Cash Flow King?
Understanding "where" a small businesses money "is" is obviously an important piece of overall success. Understanding cash flow (the money coming in and going out of the business) and its many facets is imperative. I have vivid memories of talking with small business owners who had great things going on in their operation…sales were strong, traffic in the location was good, but they could not seem to get a handle on where the money was…they only knew where it wasn't which was often in their bank account. Each case was often different, but in many of the rural towns and areas the business were still extending "onsite" credit (store credit) and in many instances, saying "no" was difficult when a local customer came in and needed to "charge" until the end of the month. It was often difficult discussions, but getting entrepreneurs to realize that collections were part of their issue and, more important, needing to find alternatives to this approach was something that had to be undertaken.
Below are articles related to the topic of Cash Flow as well as a video clip from YouTube that discusses the topic of Cash Flow. Please review the attachments and prepare a 3 page document that fully discusses this important accounting/business success topic. As always, please end the paper with your comments related to the topic and any experience(s) you may have.
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