Cash flow determines the ability of a company to survive and is a barometer of its health.Cash is something that cannot be tweaked or manipulated and therefore, the entrepreneur should monitor cash metrics closely and take appropriate action.

1. BEYONDSQUARE SOLUTIONS PVT. LTD.

2. One of the key value drivers of a business is its
CASH FLOW
How ?
Cash flow determines the ability of a company to
survive and is a barometer of its health.
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4. Creating a cash flow statement illustrates the amount of cash the business
generated during the reporting period.
The cash flow statement helps management see where the money is going.
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5. There are two Methods of Reporting Cash Flow:
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6. Basic Types of Cash Flow Activities are -
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Additional Cash-Flow disclosures
SUPPLEMENTAL INFORMATION - Any information that relates to
All these information is classified under a supplemental section at the
end of the cash flow statement.
interest earned on an interest-bearing account
the amount of income taxes paid in a reporting period
record of significant exchanges that did not involve a
cash transaction, such as exchanging stock.

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12. There are five simple steps to improve working capital management:
1. Assess your current position – Conduct a baseline assessment of your
current state of working capital, cash-flow, and line of credit.
2. Track your performance – Develop management reports and dashboards to
monitor compliance across the company, both laterally & horizontally. Partnering
with an internal audit team who take ownership of strategic implementation helps .
3. Create an Action Plan – Each area of the company should create practical and
measurable action plans, complete with accountability and target dates.
4. Roll it out – Starting with senior managers, cascade the information throughout
the ranks, making sure that every team and area leader has a full understanding of
the scope and scale of imminent changes, as well as their areas of responsibility.
5. Continue to improve – It’s important to make sure that your initiative is
sustainable. When undertaking a holistic approach across numerous
platforms, it is always important to keep things simple.

13. Unless a company’s financial operations are designed
efficiently, having a good revenue stream, or controlling
expenses alone would not matter.
If the cash-flows are negative, the company will eventually go
bankrupt no matter how promising the business model is.
So,
the focus has to be on maintaining a positive cash-flow.
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14. A continuous analysis is always key to improvement
in long-term management and optimization success.
And getting this right makes all the difference.
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