Advantage and disadvantage any two ways to improve the cash flow position
Answers
Answer:
disadvantages cash flow generation becomes necessary when a business doesn't have enough cash to find seasonal on other working capital needs negative cash flow problems that cause a need for cash flow generation have to dis disadvantages the first is that cash flow is one of the main ways to assess the financial health of a business cash flow generation can indicate a business is been for managed and in in financial trouble II is that where that while as flow generation provides a quick short term solution discounting and interest charges are working capital expenses that can serve to fir the reduced cash flow in long term
advantages the first advantage of managing cash flow is that you have money on hand to pay your expenses Glenn mas ki in association dean hat Oklahoma State University states that recent findings show that businesses with cash flow problems froze to 60% in 2010 up from 57% in 2009 business owners must monitor cash flow more closely these days because customers take longer to pay suppliers want to prepaid sooner clients are going out of the business and access to loans has demised says muski by properly accessing your sales and business expensive you will be in much better position to whether the inventor inevitable hard times
anotheranother advantage of having positive cash flow is the ability to borrow money OS use uski says that these days in addition to tax returns and other professional financial information companies must use cash flow management histories to provide to bank they can repay loan is the business owner today must consider all the options to ensure a healthy cash flow balance says muski have an option hi cities his sides is to pay vendors early this will ultimately help the cached floor the business is accumulates over time he says