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Why Cash Flow Management is Critical for Small Businesses

 
  Mark S. Becker, Partner, CFO Edge, LLC  
   
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  Article Summary  
With a strong focus by many Los Angeles and Southern California executives on growing revenue and profits, there is frequently less attention paid to why cash flow management is critical for small businesses.

Certainly sales and profitability are important, but an area that often trips up businesses is a lack of cash flow and related problems.

Identified in this article are six specific problems caused by inadequate cash flow, as well as six ways that a company can benefit from working with an outsourced CFO to improve cash flow.

More problems are generated by poor cash flow than low profits or slow sales, and executives interested in assessing root causes of cash flow - along with applying corrective actions - can benefit greatly from talking with an outsourced CFO with a proven track record of improving cash flow and delivering related performance improvements.

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