Cash Flow Management

Cash Flow can be understood as timing difference between receipt of money & payments. If the speed of payments is greater than the speed of receipt of money it is termed as adverse cash flow. In adverse cash flow one needs to infuse huge working capital in the business. It is well known that higher working capital increases interest costs & thus reduces margin of profit. We study the business throatily and find out the reasons for adverse cash flow & provide suggestions to improve the cash flow.

Normally the business die just because of adverse cash flow rather than the lack of sufficient profits. For success in business the foremost importance should be give to the management of cash flow.