Business & Finance homework| Business & Finance homework help
Management of cash flow is an important aspect of financial management. Cash flow is the sum of all money that flows into and out of an organization, which includes income from investments and sales, and expenses like payroll and overhead costs (Meyer and al. 2020).
Without proper cash flow management, businesses can find themselves unable to pay for essential expenses or invest in growth opportunities – both of which are critical for long-term success. This issue can only be addressed by creating a budgeting system that considers current income, projected income, and expenses. Then any adjustments that are necessary can be made.
Furthermore, I would also recommend utilizing tools like forecasting and scenario planning which allow managers to predict potential changes in revenue/expense ratios based on various scenarios (e.g., increasing/decreasing product demand) so they know how best to manage resources under each condition. The collection of debt could also be improved by paying accounts on time. This increases liquidity in the company and avoids unanticipated losses.