Cash Flow Tips For Your Growing Business
Many business owners confuse profit with cash flow. A business may be highly profitable, but at the same time could be running low on cash (e.g. due to excessive drawings or poor debt collection policies).
It’s important for businesses to firstly prepare a profit & loss budget to forecast the operating performance of the business and then assess the impact that these projections have on the future cash flow of the business. Accordingly, a business needs to prepare both a profit & loss and cash flow budget at the same time.