Cash flow: Knowing how to monitor and manage it is critical to business growth. Simply put, it’s the money you have left over from operations after all expenses, loan payments and capital investments are accounted for. In order to see where your cash flow has been (and where it’s going), you’ll first want to start tracking your cash conversion cycle using a straightforward formula.
Once that’s squared away, there are additional tips to managing cash flow that are key to keep in mind. Following these pointers can help identify critical challenges to your cash flow, such as excess inventory or low profit margins.