What is Cash Flow Management?

Cash Flow Management can be described as the act of observing, analyzing and controlling flow of money in and out of a business. The cash flow consists of operating activities (sales, bills), financing activities (loans, interest) and investing activities (assets, acquisitions). Cash flow management is also very effective so that there is no time when a business runs out of cash even in slow seasons. Budgeting, automated invoicing, expense control, and forecasting tools are used to ensure that there is a positive balance. The good cash flow management is the key to success of the prosperous business and its failure can happen despite the existence of the profit. Finally, cash flow management is beneficial in the sustainability, growth and financial stability.