Without a Cash Flow Analysis, you might be guessing. That can be a very dangerous choice given what is at stake: healthy profit, completing a project, or worse yet, a total loss.
While sales are the muscles of a business, cash flow is its life blood. Cash flowing
regularly into a company is necessary to pay salaries, buy materials, and keep the lights on and the doors open. Many companies are forced to slow their growth simply because they lack the cash inflows necessary to support cost outflows.
Speeding up the flow – converting sales into cash as soon as possible – and increasing the spread between inflows and outflows to build a cash cushion are essential to the long-term, sustained growth of every company.
Colin Toth CPA, CGA, Senior Manager
Claudette Palmier CPA, CGA, Senior Manager
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