Taking into account that the cash flow allows:
- Deciding the best mechanism for short-term investment where there is excess cash.
- Take necessary measures to define the source of funding when there is a shortage of cash, and manage resources to be the owner, or possibly initiate the necessary procedures to obtain loans to cover these missing and allow the operation of the company .
- When and in what quantity purchased loans are payable in advance.
- When making major outlays of money to keep operating the company.
- In terms may be available to pay additional benefits to employees such as the Christmas bonus, vacation, profit sharing and so on.
- With much cash may be available for personal business without affecting the normal operation of the company.
Some of the major decisions that affect cash flow are:
- Promptly invoicing
- Create incentives for upfront payments
- Avoid the outset to delinquent customers
- Reduce inventory
- Consider Consolidating Your Loans
- Increasing Credit Limit for Customers
- Minimizing billing problems
- To improve the possibility of recovery
- Methods and Tools Collection
Cash Flow can be calculated for any span of time: daily, weekly, monthly, yearly … that need.
One must take into account that in times of high inflation or fluctuations in exchange rates, we must anticipate the rates, and affecting the corresponding period. As they arise, will the actual turning.
This not only applies to inflation or the exchange rate itself, but to see everything that is replicated by them (eg, salary increase, imports, goods oligopoly, etc.)..
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