What Is Cashflow?

What Is Cashflow?

Sounds pretty simple doesn’t it. Cashflow is the flow of cash in and out of your business.

But, this is like saying a car engine is simply a combination of parts that make the car move. Technically you would be correct, but to make the car run better you would need to understand more about how the engine parts work.

In the same way, cashflow is more than just the flow of cash.

The Cashflow Risk

The biggest risk we see is that companies try to finance their cashflow before really looking at what is going on and seeing what needs to change.

The video below talks you through the main cashflow issues and mistakes, all in just over 60 seconds.

Take a look then let us know what you think.


Cashflow Actions

Remember to take a look at what is going on in your business before funding cashflow, please never do it the other way round as it is prone to create bigger problems.

Remember to let us have your views on the video, add your comments above or contact us direct via the website.

By David Farmer

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