Small Business

Cash flow management is the process of monitoring, analyzing and adjusting your business’ cash assets. The most important function of cash flow management is to avoid shortages in funds by making sure that cash inflows do not fall below cash outflows unnecessarily by scheduling bill payment around estimations of when income is likely to be obtained. Cash flow management also deals with applying strategies that will maintain and extend adequate cash flow for the business. An example of this is to shorten the businesses cash conversion period so that businesses can obtain money faster.