Positive cash flow: Align your income and expenses
Posted: Sun Apr 20, 2025 8:27 am
Think only about cutting costs. It is important to find a way to cut costs but it is even more important to find ways to grow revenue. You need to use the “revenue drivers”: the number of customers, the number of purchases they have made and the average spend they have made.
Driver analysis allows you to increase business, thereby increasing liquidity. In this way, you can avoid excessive cost cuts that could lower the quality of what you offer.
Bad Investments. Good cash flow management also involves purchasing production assets at the right price and not before the end of their expected life cycle.
It is advisable to maintain a good relationship with your bank chinese thailand data manager in order to agree on convenient financing conditions and to consult with your accountant before any expenditure.
Using inadequate tools. Keeping track of cash flows by hand makes the operation very complicated and exposes you to the risk of making mistakes.
Read: Costs and Revenues in Business Management
To always have a positive cash flow , income and expenditure should be synchronized: for example, it would be useful if suppliers were paid at the same time as customers' money was collected.
Driver analysis allows you to increase business, thereby increasing liquidity. In this way, you can avoid excessive cost cuts that could lower the quality of what you offer.
Bad Investments. Good cash flow management also involves purchasing production assets at the right price and not before the end of their expected life cycle.
It is advisable to maintain a good relationship with your bank chinese thailand data manager in order to agree on convenient financing conditions and to consult with your accountant before any expenditure.
Using inadequate tools. Keeping track of cash flows by hand makes the operation very complicated and exposes you to the risk of making mistakes.
Read: Costs and Revenues in Business Management
To always have a positive cash flow , income and expenditure should be synchronized: for example, it would be useful if suppliers were paid at the same time as customers' money was collected.