Most businesspeople have a rough idea of the moving parts of cash flow, but it’s vital for business leaders to understand how to gauge cash flow accurately. Several operational expenses can easily go unnoticed, such as inconsistent contracts with service technicians or similar expenses. For new business owners, these expenses quickly become overwhelming.
Topics: Cash Flow, Cash Flow management, Cash reserves, Cash Flow Metrics, EBITDA
We frequently write about the importance of cash flow and how devastating it can be to your business if you cannot cover vital costs such as payroll. If it is possible, it helps to have cash available in the form of a cash reserve so that you can cover essential expenses in a cash flow crunch. Let’s consider how companies maintain a cash reserve, and look at how to decide upon ideal reserve amount for your business.
Topics: Cash Flow Solution, Cash reserves
