How the cash flow of the business can be controlled and the consequences of not doing this?

Question

Let's say this business is a Quality Furniture limited Company

Answer 1

Your cash flow is how much you make (your income) minus how much you spend (your expenses). Despite this simple definition, producing a cash flow statement can seem like a tough task to complete. The entire financial planning process is dictated by your cash flow. Your cash flow will influence what your goals are, how much you can invest toward them, how long it will take to reach them, and how much insurance and estate planning you can afford. A positive cash flow allows you to direct cash toward paying down debt, building an emergency fund, and investing toward your financial goals. A negative cash flow, however, is a major “red flag” that indicates you must reduce or eliminate expenses before proceeding with investing and other activities.

As you now know, spending less than you make is vital to your financial health. To get started, lets divide how you control your cash flow into three easy steps: develop, budget, and act....(refer to the link for the rest of this article)