Benefits of positive cash flow to a business

[Augusta]

Positive cash flow is when you have more of funds coming into your business than leaving it. To have a successful business you must always find a way of making your cash flow as positive as possible. You might asked what the benefits of this.

The below are the benefits you derived from having a positive cadh flow.

You would be able to expand your business speedily. No business want to be stagnant because grosrh is the constant factor for any business. so positive cash flow will help here.

Positive cash flow allows the business to meet present and future financial obligations on time. This is one factor that can make or mar the progress of the business.

it shows the business meet the day to day activities that makes the business ongoing daily. Without the positive cash flow it will show that the business will be collapsing soon or later

What do you think?

 

[Suba]

Cashflow is a form of financial statement that must be reported out or to third parties (investors, taxes), because it needs to be audited by a registered public accountant. Cash flow must also be prepared in accordance with general accounting principles (GAAP, maybe in your country the name is different). There are two methods for compiling cash flow, namely the direct method and the indirect method.
Cashflow contains all cash transactions over a period generally a year and is classified as Funding Cash Flow, Investment Cash Flow and Operating Cash Flow. Cashflow statements are very important, especially for owners, management, investors, especially to evaluate the company's ability to pay its obligations. Also to evaluate the ability of cashflow for the next period. To evaluate cashflow you need to calculate several important ratios such as: operating cash flow ratio, price (shares) to cash flow ratio, operating cash flow ratio etc.