Financial experts can suggest many ways to deal with cash flow problems. You, the small

business owner, must remember to always make finances your number one priority.

Constant monitoring is the best way to identify problems at the earliest possible stage.

Many small business operators, and those who have at one time or another been involved

with small business, will tell you that you can never spend too much effort or time on

the financing aspect of operations.

Key areas to watch include:

Cash balances.

Accounts receivable turnover.

Accounts payable balance.

Interest payments and percentages.

Worker productivity.

Unnecessary expenses or excesses.

Obsolete assets and inventory.

Making sure that the people handling your cash are capable and honest.

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Part Five Basic Financial Planning and Control

Questions

1.

Which of the above can you quantify?

2.

Which of the above do you think is the most important point? Why?

3.

Which of the above can be compared to a budget? Which budget?

4.

What other suggestions do you have? Explain