The 5 Benefits of Positive Cash Flow
Posted on 12th August 2021 at 15:45
Every business should have positive cash flow. From a part-time sole trader to a limited company with dozens of staff, the maintaining of positive cash flow reflects a commitment to financial management and presents a variety of benefits.
Stay out of debt: Going into your business overdraft immediately brings with it fees and owed interest, which eat into your profits. By keeping your cash flow positive, you’re hanging onto every well-earned penny.
Payroll is easier: When you know that you have enough cash to pay staff on time, the preserving of employee morale becomes a whole lot smoother.
You can invest when required: If you find yourself needing to purchase new equipment or upgrade an existing service, positive cash flow can make it happen quickly and easily.
Protect your mental health: Negative cash flow can cause a business owner an awful lot of stress. By putting in place a system that keeps your bank accounts healthy, you can focus on your daily role without unnecessary headaches.
Grow your business: Money in the bank gives you greater freedom over how your business develops and grows. Say goodbye to the obstacles and constraints that come with company debt and plan for a more profitable business.
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