Managing cash flow in your business is one of the important aspects of keeping it healthy and running smoothly! Many small businesses fail despite being relatively profitable because when it is time to pay the bills, they have no money on hand. Many factors can influence cash flow. This is a handy calculator that shows the effect of sales, inventory, credit terms, and other variables on cash flow. You can plug in real numbers or adjust terms using a sliding scale to see their effects on cash flow. It’s a great learning tool! On the same site, you’ll find other great resources on preparing business and marketing plans.
If you want to learn more about the importance of cash flow, read this article (“Cash is King” by Tim Berry) which looks at how money flows in and out of a business and how to manage that flow.