Cashflow - Why is it important

What does cash do for us?  Some people say they hate the cash society because it takes us away from our connection to our inner selves and others.  That it is bad to “chase the dollar”.

Let’s look at it in a different way .

Cash allows us the freedom to live how we want.  If we didn’t have any cash whatsoever how would we buy food?  Bargaining is merely replacing cash with items that we happen to have.  Cash gives us the flexibility to bargain without restricting ourselves to what we currently have.

Cash allows us to look after others.  By having a bigger earning capacity it allows us to donate our excess cash to help other. By passing it on we create a cycle effect that allows other to do that same and ends up benefiting more and more people.

To use our cash effectively we need to know what we have.  This is as important in business as in our personal lives.  If a business doesn’t know what cash it has available to spend it cannot make informed decisions to its benefit and instead stands still because of a lack of knowledge and subsequently fear.

To move forward a business needs confident that it has its debts covered and has excess funds to grow and to help others.  Understanding its cashflow allows it to do that