Think of the impact of credit sales on cash flow, for example. One-time events such as population shifts or changes in competition could trigger such consequences. Run out of cash and the business is in trouble. Even if it is possible to raise more money from other sources, sooner or later the timing of cash inflows must match the outflows if the business is to survive. It s not easy.
Some businesses never achieve cash flow control.
These businesses are always in trouble, chronically overdrawn, slow in paying bills, and will eventually fold. This kind of complication need not be an integral part of business management. Cash flow management does not need to be mysterious or complex. Managing cash is all about timing the inflows and outflows. Cash Flow Analysis starts the process.