Whether you are a small startup working on your proof-of-concept or a larger corporation exploring new markets, managing your cash flow effectively can make or break your company's success.
Cash flow management is a critical aspect of running a successful business. Without proper cash flow management, your business will struggle to pay bills, meet payroll obligations, and grow their operations. Understanding the concept of working capital requirement (WCR) and its impact on cash is also very important.
In this blog post, we'll provide various tips for effectively managing cash flow and optimizing working capital requirement (WCR) to help businesses succeed.
Two concepts to understand: Cash flow and Working capital requirement.
Cash Flow from Operations, meaning from the company’s main business activities. These activities may include buying and selling inventory and supplies, along with paying salaries.
For example, before collecting a sale from a client that has a 30 days payment terms, the company has to finance the purchase of the inventory to a supplier that only gives payment terms of 15 days.
How can I Optimize my Cash Flow?
Proseso Consulting - The Finance expert for growing and international businesses
Proseso Consulting provides business advisory and finances managed services (bookkeeping and accounting, outsourced and automated payroll, tax compliance, financial reporting, etc.). We are here to help you achieve your long-term business goals!
Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.
This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.