Discussion Essay

Financial experts can suggest many ways to deal with cash flow problems. A small business owner must remember to always make finances their number one priority. Constant monitoring is the best way to identify problems at the earliest possible state. Many small business operators, and those who have at one time or another been involved with small business, will tell you that you can never spend too much effort or time on the financing aspect of operations.

Key areas to watch include:

  • Cash balances.
  • Accounts receivable turnover.
  • Accounts payable balance.
  • Interest payments and percentages.
  • Worker productivity.
  • Unnecessary expenses or excesses.
  • Obsolete assets and inventory.
  • Making sure that the people handling your cash are capable and honest.

 

Which of the above do you think are the most important? Why?

What other suggestions do you have? Explain.