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Importance of Cash Flow  

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SvenBowl
(@svenbowl)
Active Member

For example, if you bake cookies, you buy ingredients for 1000$. You sell cookies for 5000$. That is 4000$ profit? Well, wrong, because customers may pay later which is often happens in the business world. So you are not solvent this month. That is bad for business, especially big businesses.

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Posted : 07/11/2019 3:29 pm
Toshi3
(@toshi3)
New Member

You need some other temporary sources of cash. For example, if you are in seasonal business you have months where you can do great but other months you would need something to go by.

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Posted : 10/12/2019 3:46 pm
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