Reduce Cash Flow Gap With Accurate Cash Flow Management

July 22, 2009 - PRLog -- Cash flow statement is ultimately depends on cash inflows and cash outflows. Not only small businesses are always in need of cash but even large businesses become helpless without cash as they want to increase their employment numbers and inventory rapidly. For these purposes, they always want more and more cash.

A healthy cash flow is an essential part in the success of the business. If you fail to pay your suppliers, creditors or your employees, then you may be out of business which shows a poor print in the specific market.

For small businesses, the most important part of cash flow management is to avoid the cash shortages, caused by having a major gap between cash inflow and cash outflows. You can not stay for a long time in the business and in the market if you fail to pay all your outstanding within the given time duration.

At BK2I (http://www.bookkeeping2india.com), our experts will examine your cash inflows and outflows and search out the factors which directly affect your cash flow and the factors are as under:

-   How much cash does your business have
-   How much cash does your business need to operate and maintain, and when is it needed
-   From where does your business get its cash and for what purpose you spend it
-   How do your income and expenses affect the amount of cash you need to expand your business

The important step of cash flow management is to develop and use specific strategies which will maintain a sufficient cash flow for your business.

Cash Inflows:

-   Receipt of goods or services from your customers
-   Receipt of a loan
-   Interest received on the investments and savings
-   Investments of shareholders
-   Other incomes from business sources

Cash Outflows:

-   Purchase of stock, raw materials and other tools
-   Freights, Wages, rents and other daily expenses
-   Purchase of Fixed Assets- Machinery, Furniture etc.
-   Dividend payments
-   Income tax, Corporation tax, Vat and other taxes

By successfully managing your cash flow, we will enable you to narrow or completely close your cash flow gap. We can do this only by examining the factors that affect the cash flow of your business. To get more details about cash flow management, you can visit us at http://www.bookkeeping2india.com/cash-flow-management.php.

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Bookkeeping 2 India has a team of certified bookkeepers and CPAs to offer cash flow management. Our cashflow management is highly recommended by our clients.