ABC’s of Cash Flow

Cash flow is the life blood of any business. Cash flow is a pretty straightforward concept: the comparison of money ‘flowing’ into the company vs. what is ‘flowing’ out. Ideally (and essential for business survival), what is flowing in should outpace what is flowing out. If the revenue of a business can’t keep up with salaries, overhead, administrative costs, rent, etc. then that spells disaster for business success. Business growth can only be accomplished when there is consistent, well-managed cash flow.

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