Whatever the size of the business, good cash flow management is extremely important for the financial health of any company. As the name implies, cash flow is the movement of cash in and out of a company over a given period. “It is from this essential tool that demonstrates inputs and outputs that we can understand how the financial health of the business is going, analyze investment strategies, debt quality, control expenses and even detect pricing problems”, explains the financial consultant of Planope Consultoria, Daverson Furlan, in an interview with the RedeMulti TV portal.

In the report, Furlan points out that, despite its importance as a management tool, many entrepreneurs neglect its preparation and analysis, focusing only on day-to-day activities and resorting to immediate and ineffective resolutions due to lack of quality information.

The article points out what a well-done cash flow management guarantees:

*Detect mismatches between inputs and outputs of resources;

*Prevent cash shortages, seeking to cover it with operations with lower cost (interest) and adequate term;

*Make financial investments more profitable and for an adequate period of time, avoiding devaluation of money;

*Understand how fixed expenses impact cash;

*Negotiate discounts with suppliers, making advance payments;

*Be realistic: a flow view for the next 60 - 90 days can avoid excessive withdrawals that would be needed later on;

*Detect customer default problems.

Given these points, it is essential to have a financial consultancy for the success of business management.




To read the full article, access the link How to control cash flow strategically | Multi TV Network