Financial Accounting Blog

Sunday, April 25, 2004

Cash Flow. This New York Times article discusses the importance of cash flow management and 10 different things a company can do to increase cash flow.

Maintaining smooth cash flow requires juggling nearly every facet of a business, from staying on top of accounts receivable, to extending lines of credit, to managing inventory. The essence of successful cash flow management is regulating the money flowing in and out of your business. Increasing your cash flow reduces the amount of fixed capital that you need to support the given level of your business. An increased, consistent cash flow also creates a predictable business pattern, making it easier to plan and budget for future growth.