76. Cash is King is a well-known
saying. In business it is so true and you must
never loose sight of that fact.
77. Orders are very important
to any business, it is the future cash flow
but what can you do with orders, nothing until
they are produced and dispatched to your customer.
Cash today can be used in many different aspects
of the business.
78. As part of your business
plan a cash flow is an important element. This
will show the peaks and troughs of the demand
for cash in the business and whether there will
be a need to have an overdraft facility, borrow
money for working capital, dip into your savings
etc.
79.In its simplest terms cash
flow is the sum of the business receipts less
the payments made in the period or cash inflows
less cash outflows.
80. Cash Inflows are: -
Receipts from income or sales
Capital Introduced
Proceeds from sale of assets
Bank Loans
Cash outflows are: -
Purchase of stock
Business expenses
Payment of Wages
Drawings made
Tax Payments
Asset purchase
Vat paid<<
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