How Important Is It To Manage Cash Flow?

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HOW IMPORTANT IS IT TO MANAGE CASH FLOW?
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Tips for positive cash flows for Small business
operation.

• In case of financial management of a growing
  company , cash is always the king.
• Cash flow management is the only solution between
  the time you pay your suppliers and collect from
  customers or we can say cash flow management
  means delay outlays of cash as long as possible
  while motivating customers to pay you as fast as
  possible.

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Improving Receivables

• Offer discount to customers those who are
  punctual in paying bills.
• Offer Pre-payment benefits to the customers.
• To all new non-cash customers shall only be
  entertained with credit checks.
• Old outdated inventory should be closed in best
  possible way.
• Slow payment issues should be promptly handled.
• Introducing CASH ON DELIVERY option which helps
  maintain customer base.

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Managing Payables

• While managing a small start-up company, we have
  to keep an eye over every single expense.
• Expanding sales but also keep an eye on the
  unnecessary expenses.
• Control and examine growing expenses when you
  find your sales are going down with respect to
  expenses.
• Some more tips for using cash wisely are in the
  next slides,

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Tips for using cash wisely

• Dont pay dues on the 15th day if the due date is
  on 30th days away.
• Always prefer the last day payment of your dues
  via electronic fund transfer that makes you
  remain good with suppliers.
• For any delay in payment its better to talk with
  your suppliers. Youll need their trust and
  understanding.
• To reduce overall costs ask your vendors for
  discount for pre-payment.
• Dont always go for cheap suppliers, comparing
  their quality then cost.

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Before Overspending

• Before Overspending you have decide which and
  what expenses are mandatory.
• Every single penny matters - lunches for business
  meetings, costly softwares, advertisements may
  need to be revisited.
• Its always better to choose pocket friendly
  advertisement strategies.

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In conclusion

• The motive of any business is making profit, by
  maintaining the adequate Cash flow in the
  company.
• Balance sheets and income statements are just the
  basic operations of a business but maintaining a
  healthy cash flow at all times is a real world
  challenge.
• If you are in the UAE hiring a business
  consulting firm from dubai can benefit you most
  to not only maintain the cash flow but also to
  help you with proper business plan writing.

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• Read the blog about MANAGING CASH FLOW
  EFFICIENTLY
• THANK YOU
• centurionconsulting.ae
• www.centurionconsulting.ae