Managing cash flow
Coronavirus (COVID-19): Financial support for small businesses
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Your cash flow is the money you have coming in from revenue and going out for expenses. Good cash flow management will ensure you always have money available for paying your expenses when they are due.
Even profitable businesses can fail if cash flow is not managed properly. If you don't have enough money available to pay your lenders or suppliers, banks may foreclose and suppliers could cut supplies.
There are many areas in your business that can impact on your cash flow. It is important to understand how customer payment terms, supplier payment terms, loan payments, future spending decisions and other items can affect your cash flow.
This guide will help you to manage your cash flow and understand how to use cash flow analysis to inform business decisions.