Cash management is particularly important for new and growing businesses...
Traditionally, businesses have believed that profits indicate success. While it is true that profits are one of the key indicators of success, many are now starting to realize that there is something more fundamental to their very survival; and that is ‘cash’.
‘Cash is King’ and this holds true for every business irrespective of its size.
The availability of cash balances is a key determinant of a company’s competitive ability, because it provides the means to invest in people, technology, and other assets.
Efficient Cash Management is therefore indispensable for any business.
Lack of control over cash flows and inefficient cash management can be very harmful to business. More often than not, it is the improper management of cash that has caused businesses to fail. Effective cash management is therefore a necessity for businesses.
A company’s cash position is a better sign of the health of business rather than its profit and loss.
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