Cashflow management: the basics

Introduction

Cash is the oxygen that enables a business to survive and prosper and is the primary indicator of business health. While a business can survive for a short time without sales or profits, without cash it will die. For this reason the inflow and outflow of cash need careful monitoring and management.

This guide looks at the key elements of cashflow and at how effective cashflow management will help protect the financial security of your business. It outlines the steps that you can take when dealing with your customers, suppliers and stakeholders to improve cashflow. It also highlights common cashflow problems and how to avoid them.

Subjects covered in this guide

• Introduction
• What is cash?
• Cash inflows and cash outflows
• The principles of cashflow forecasting
• Manage income and expenditure
• Cashflow problems and how to avoid them
• Using your cashflow forecast as a business tool
• Cash management in action
• Refinements to a simple cashflow forecast
• Here's how I manage my cashflow

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