By Leita Hart, CPA
Cash is king! This is a simple three word sentence, but it is very powerful, and forgetting that cash is king can have severe consequences for business owners. Business owners that do not understand cash flow can actually find themselves in the odd position of making a profit while going out of business!
Knowing that cash is important, however, is only the first step. Business owners need to know how to generate cash, and they need to know how to manage their cash once they get it. The good news is that understanding cash flow does not have to be hard.
In The Four Principles of Happy Cash Flow Leita Hart has condensed cash management into four basic principles, and she describes them in simple easy to understand terms. She demonstrates the concepts by using examples from familiar companies such as Dell and Wal-Mart, and she explains how the principles can be applied to businesses of all types and sizes. The book includes ideas for:
- Maximizing cash balances,
- Getting money in the door faster,
- Managing or controlling inventory,
- And more.