cash flow management
Monitoring liquid funds
Cash flow management is the practice of monitoring, analyzing, and optimizing the timing of money moving in and out of a business or household.
The goal is ensuring enough cash is available to meet obligations—payroll, rent, debt payments—while avoiding idle funds that could be invested or deployed elsewhere.
Poor cash flow management sinks more small businesses than lack of profitability.
- tight budgetSeverely limited funds
- cash reservesAccessible money stockpile
- money in the bankReliable financial reserves
- cash on handCurrency immediately accessible
- emergency fundsSavings for unexpected needs
rainy day fund · forecasting · expense tracking · paying the bills · accounting · balance sheet · keeping the lights on · float · accounts receivable · burn rate · contingency funds · payroll processing · credit lines · runway · accounts payable · tax planning · savings · financial reporting
cash flow managementfinancial mismanagement
Improper handling of funds
cash flow managementpaper profits
Increase in value before selling
cash flow managementreckless spending
Careless use of funds