The Importance of Cash Flow Projections
As a business owner, you probably already know it’s important to monitor company
profitability. But something that is also very important, but too often overlooked, is Cash
Flow Management. Unless you have a large stockpile of cash and/or significant availability on your line of credit with your bank, you should take the time to do Cash Flow Projections.
Projecting your Cash Flow makes you aware of potential cash shortfalls well in advance so
you can work on obtaining the funds you need to cover the shortfall before it is critical.
Remember, cash is king. If you run out of cash, your business will not be able to operate
regardless of what your Profit and Loss statement says.
Bookkeeper vs. Controller vs. CFO
Self Assessment Checklist