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Article: Managing cash flow: Simple in concept, complex in practice
- Article from:
- Advances in Breast Cancer
- Article date:
- November 1, 1996
- Author:
CopyrightCopyright Australian Society of CPAs Nov 1996. Provided by ProQuest LLC. (Hide copyright information)
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Clear policies and careful planing are essential for good cash management, according to Derrick Heywood
Cash flow is a simple concept that is easily understood. If you don't have any cash on hand, the business will collapse. But not everyone understands the role of the cash manager, or how their work can impact on various aspects of a business and its overall level of profitability.
A growing business can quickly outstrip its cash resources as any available cash is quickly ploughed back into the business, through building up inventories or creating credit sales. It is the role of the cash manager to ensure that this does not happen by looking ahead to the cash requirements of the business ...