Insufficient cash flow, entropy of business
In any business, it is critical matter to understand the path of each and every penny that goes to and from the hands of a company. Cash flow of a company must be such that it not only could keep its machinery running but also earn profit. But cash flow cannot always remain healthy. Due to recession or other causes, a company may lose its worth and may end up with an insufficient cash flow. When this problem arises, the risks of a company going bankrupt elevate.
Use management tricks to manipulate cash flow
The cash flow should be measured and every chunk of money should be tracked; thus you will be alarmed before the calamity strikes. You could improve the collection of receivables by intriguing your customers. Management of payables can be important; you can manipulate the due dates to save money for times of requirement. Surviving the shortfall of your supply is also an important way of dealing with cash flow problems.