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Business strategy
How to maintain business cash flow
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[QUOTE="King bell, post: 267849, member: 75687"] Cash flow is one of the most important aspects of business. It is the lifeblood that enables you to keep your doors open, pay employees, and fund new projects. Yet all too often it can prove elusive. You may find yourself unable to pay your bills on time, or unable to make payroll at all. Small changes in cash flow can cascade into major issues in no time at all - so be proactive with these tips on how to maintain business cash flow! 1. Look at your own cash flow A great way to assess your business cash flow is to examine your own previous and current records. By looking back, you can see where the money has come from, and where it has gone - because the cash in and out of a business is not quite as simple as a sheet of paper! 2. Compare previous periods Have you been able to pay your bills on time? Has it been too difficult to get new customers? If so, when were things easier for you? Similarly, take a look back over the last few years. If there are significant trends, or the same issues repeatedly crop up, then it's time to act. 3. Consider your cash flow forecast Make sure you keep a close eye on your cash flow forecast. Think ahead and base your future plans on realistic assumptions. If you do have unexpected expenses to account for - like a new office space or new equipment - make sure that you have assessed what they're likely to cost in advance. This way, you can build them into the budget and see how this affects your cash flow over time. [/QUOTE]
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