Why cash is important for your business is this week's topic. In previous videos I've looked at turnover and profitability, but this time cash is in the spotlight.
I will look at
- Why cash it is the key financial number in your business.
- What cash is
- Why cash is important to your survival, prosperity and growth.
What is cash?
Firstly, cash is what many people think of when they say money. Cash is physical notes and coins in our wallets, our purse and is what flows in and out of our bank account.
Secondly a noncash transaction is where there is a delay between buying or selling goods and services and the actual cash being paid over or received.
Watch to find out more
Why cash is a big deal
To clarify without Cash your Business is screwed
Having cash and managing it is key to a successful business. For example even if your business makes a profit (congrats by the way) it does not mean that you will survive, grow and prosper. Most importantly, your profit is not the same as cash. Moreover cash is what pays you, your bills, your staff loans and suppliers. To clarify this means that even a profitable business can run into trouble if the cash dries up. Certainly that well known saying of Revenue is vanity, profit is sanity, and cash is reality springs to mind.
Above all, cash is the thing that makes the wheels of your business move.
Cash is important!
To sum up cash will help you achieve your goals, deliver your why, and fuel prosperity and growth – and keep you away from the clutches of poverty. Having good credit control system, managing your costs and income, helps keep the lights
Get in touch with us to see how we can help you with managing your cash flow, and show you Why cash is important for your busniess . Contact us if you need help figuring out and sorting your financial planning, your tax and other accounting and business matters. For more business and finance , news, advice and tips, don’t forget to watch our weekly broadcasts, listen to our weekly podcast I Hate Numbers.
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