April 2010
Beginner
448 pages
10h 32m
English
Content preview from Talent Is Not Enough: Business Secrets For Designers, Second Edition
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Chapter 14: Cash flow
Managing cash effectively is an important challenge for all creative firms. “Cash” includes not just currency but also checks, money orders, bank transfers, and the like. The term “cash flow” refers to the overall movement of money into and out of your business during a given span of time. If a company has positive cash flow, money will be available for such things as expanding operations or making distributions to the owners. However, if a company has negative cash flow, it may have to borrow money to continue operating. This chapter will help you get a handle on this vital business issue.
There are three standard tools used by well-managed businesses to analyze their cash activity:
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