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Cash
Flow
Cash
flow is the lifeblood of any business. It
cannot be ignored, especially in the early periods of starting a new business
where positive cash flow is essential. Even in established businesses, cash flow
considerations can play a major part in ongoing strategic planning. A
comprehensive cash flow analysis takes into account ongoing expenditures such as
payroll and supply purchases as well as periodic large cash expenditures for
asset purchases. For cash receipts,
it contemplates regular cash collections on outstanding receivables and periodic
financing tools, such as debt or share sales. Most businesses fail, not because
the ideas were not sound, but because cash flow problems prevented the idea from
reaching fruition.
A Chartered Accountant can assist you in designing, preparing, and maintaining a cash flow budget. Contact Keith Anderson CA at (780) 447-5830 if you need advice.
See the Cash Flow Management
section for some guidance in preparing cash flow reports.
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