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Article: Bank on it: managing your cash flow.
- Article from:
- Hawaii Business
- Article date:
- August 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Hawaii Business Publishing Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Healthy cash flow is essential to business. It is important to have sufficient cash on hand to pay cash obligations. business owners claim that healthy cash flow is more important than the business' ability to deliver its goods or services. With insufficient cash to pay your suppliers, creditors and employees, you're out of business.
Understanding cash flow is the first step to effective management. Cash flow is the net movement of money in and out of your business. It is the cycle in which your business uses cash to generate goods or services for your clients, collect receipts and pay expenses. The trick is to have more inflow of cash than outflow.
Net ...