A successful business relies on a variety of components, from consistent sales to unwavering customer service. One thing many companies overlook is the importance of cash flow and how to effectively manage it. Learning how to forecast cash flow for times of increased or decreased profit ensures consistent business success.
Our CEO, Vernon Tirey, spoke with Mark Henricks at AMEX OPEN Forum on this topic late last year. An excerpt from his interview is as follows:
The reason cash flow and forecasting are so important comes down to one word: surprises. In business, especially small business, there are always surprises. An employee leaves and you have to replace them, someone pays late that you were expecting to pay on time, a deal doesn’t come through that you were counting on—those kinds of surprises are happening every month. When you have a forecast and cash flow worked out, you know the impact of these surprises and can start developing strategies to deal with them. If you have to spend time scrambling to find out what the impact is, it wastes a lot of time.
For more advice on managing cash flow from Vernon and two other finance and business experts, read the full article on AMEX OPEN Forum: https://www.americanexpress.com/us/small-business/openforum/articles/cash-flow-forecast-wrong-right/?linknav=us-openforum-search-article-link3