“Cash-flow is the lifeblood of any business” – we have all heard the phrase, to the point that it has become accepted common wisdom bordering on a cliché. It is easy to understand why when you break it down to the most basic business principle. No matter how great your business is, if you run out of cash the game is up.
Add to this that virtually every business decision culminates in the transfer of value, usually represented by the need to collect or pay out money, and it becomes clear why cash flow is so closely correlated to the health and well-being of any business.
