What makes cash flow so good for business, and can too much of it hurt a business?
2006-10-04 11:56:04 · 4 answers · asked by immygrant 3 in Business & Finance ➔ Other - Business & Finance
Cash flow means having enough money (cash) coming in to make sure you have what is needed to pay your employees and to pay your bills on time. If all you have is receivables (people owe you money but they haven't paid you yet), you may have income on paper, but you have nothing in the bank to pay the bills with. If too much cash flows in, you may want to park some in some temporary investments until you need it. If too little cash flows in, you may need to borrow money to meet your current obligations, which will ultimately hurt your profit margin.
2006-10-04 12:07:20 · answer #1 · answered by just♪wondering 7 · 1⤊ 0⤋
Hi,
CASH FLOW good for business, so we can know detail where money out and which the source of money in. It's much help, so we know the biggest expenses and the biggest income sources.
This can be a good for Business solution and business strategy to increase profit. CASH FLOW good if we can arrange the money in and out smoothly, while keep making profit.
Cheers !!
MS
2006-10-04 14:50:48 · answer #2 · answered by Monalisa 2 · 0⤊ 0⤋
Hi there !
Cash flow will be good "if the demand and the supply " are good !
'Too much of it' may not hurt the business directly...but if not managed properly, it may...!
best wishes..!
2006-10-04 12:06:22 · answer #3 · answered by suresh k 6 · 0⤊ 0⤋
cuz you need to spend money to make money
2006-10-04 12:04:05 · answer #4 · answered by mørbidsшεεŧnεss 5 · 0⤊ 0⤋