Knowledge Library · Component
Cash Flow Management
What it is
Understanding and planning the movement of cash in and out of the business — what's coming in, what's going out, and when.
Why it matters
Profit on paper doesn't pay salaries — cash does. Many businesses that fail are actually profitable; they simply run out of cash at the wrong moment. Visibility turns that risk into something you can see and manage.
What makes it work
- A rolling short-term forecast (for example, the next 13 weeks)
- Understanding the gap between paying suppliers and getting paid
- Knowing the minimum cash buffer the business needs to stay safe
- Reviewing the forecast regularly as reality changes