What are the Key Components of Cash Flow Management?
1. Receivables Management: Ensure timely collection of accounts receivable. Implementing strict credit policies and offering early payment discounts can help. 2. Payables Management: Optimize the timing of your payments to suppliers without incurring late fees. Negotiating better payment terms can improve cash flow. 3. Inventory Management: Maintaining an optimal level of inventory minimizes tied-up funds and reduces storage costs. 4. Forecasting: Use cash flow forecasting to predict future cash needs and plan accordingly.