gives you a competitive advantage in your market.encourages customers to fast-track or increase spending.Offering credit can also be beneficial to your cash flow as it: This can be risky, so ensure you have good policies in place to minimise the risk to your cash flow. Offering credit as a payment option allows your customers to purchase products or services without paying upfront. Understanding your cash flow will help you make informed decisions about improving your profit and performance. If you are considering taking on debt finance, consider how repayments will affect your future cash flow. To get finance from lenders, you may need a cash flow projection to prove you can make repayments. Your cash flow statement and forecast can help you to identify financial opportunities or risks and ensure your business is heading in the direction you want. Use financial statements to monitor cash flow.You may need a strategy to cover a potential temporary cash shortage to gain the long-term benefit. For example, an advertising campaign will increase your expenses (and lower your cash flow), but the resulting extra sales may increase your revenue (and raise your cash flow again). When making decisions on specific objectives or purchases, consider how this could impact on your cash flow. Review how a decision may impact on cash flow.When you have a good understanding of your cash flow, you can use that information to measure your performance and make informed decisions.
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